What method of probability assessment would most likely be used to assess the probability that a customer will return a purchase for a refund?
A) Classical probability based on the ratio of the number of ways the event can occur
B) Relative frequency based on previous history
C) Subjective probability based on expert opinion
D) Independent probability based on two unrelated outcomes

Question

Quizplus · Accepted Answer

Relative frequency is the most appropriate method for assessing the probability that a customer will return a purchase for a refund because it relies on historical data of similar events. This method uses the past occurrences of returns to predict future behavior, making it well-suited for this context.

What Method of Probability Assessment Would Most Likely Be Used