Which of the following best describes objective probabilities?
A)repeating an experiment that exactly simulates the decision and using the data to derive the probability
B)obtaining an estimate from an expert
C)using a firm of management consultants to provide the value of the probability
D)none of the above

Question

Quizplus · Accepted Answer

Objective probabilities are derived from actual observed data from repeated experiments that simulate the decision under consideration. This means that choice A, repeating an experiment that exactly simulates the decision and using the data to derive the probability, is the best description of objective probabilities. The other options, obtaining an estimate from an expert or using a firm of management consultants, are based on subjective judgments and therefore not objective probabilities.

Which of the Following Best Describes Objective Probabilities