Researchers studying government records of small businesses found that the probability of a newly established small business still being operational in five years was 0.35. However, entrepreneurs starting new businesses estimate that the chance of their own business still being in operation in five years is 0.75, on average.

a) Which methods of probability assessment were used by the researchers?

b) Which methods were used by the entrepreneurs?

c) What reason can you suggest for the difference in the resulting probabilities?