A New Jersey company relies on a steady supply of power to keep its manufacturing going. Recently at a planning meeting, the general manager stated that the chance of a rolling blackout affecting production is 0.15. She most likely made this assessment using subjective probability assessment.

Question

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Subjective probability assessment is used when probabilities are determined based on judgment, intuition, or personal belief rather than on precise, measurable data. The general manager's estimation of the chance of a rolling blackout affecting production is an example of this, as it likely reflects her personal judgment or experience rather than a calculated statistical probability.

A New Jersey Company Relies on a Steady Supply of Power