To determine whether the given set of outcomes and their associated probabilities forms a valid probability model, we need to check two conditions:
- The probabilities must be non-negative (i.e., greater than or equal to 0).
- The sum of all probabilities must equal 1.
Let's analyze the given probabilities:
- Probability of HH: 0.03
- Probability of HT: 0.66
- Probability of TH: -0.45
- Probability of TT: -0.19
Checking the non-negativity condition:
- Probability of HH (0.03) is non-negative.
- Probability of HT (0.66) is non-negative.
- Probability of TH (-0.45) is negative.
- Probability of TT (-0.19) is negative.
Since the probabilities for TH and TT are negative, the first condition is violated.
Checking the sum of probabilities:
- \(0.03 + 0.66 - 0.45 - 0.19 = 0.03 + 0.66 - 0.45 - 0.19 = 0.05 \)
As a result, the sum of the probabilities does not equal 1.
Since both conditions for a valid probability model are not satisfied (due to negative probabilities and the sum not equaling 1), the given set of outcomes and probabilities does not constitute a valid probability model.