Which of the following is true of subjective probability?
A) It is a measure of the historical frequency of an uncertain event.
B) It is a measure of the frequency of a certain event.
C) It represents the decision maker's best assessment, based on current information, of the likelihood of an uncertain event.
D) It represents an intuitive and ad hoc assessment.
E) It measures the degree of variation around the mean.

Question

Quizplus · Accepted Answer

Subjective probability represents the decision maker's best assessment, based on current information, of the likelihood of an uncertain event. It is based on personal judgment or opinion, rather than on historical data or mathematical calculations.

Which of the Following Is True of Subjective Probability