Which probability assessment method was used in each of the following examples: empirical, theoretical, or subjective? a) A construction company

Question:

Which probability assessment method was used in each of the following examples: empirical, theoretical, or subjective?

a) A construction company bids on a contract to build a new bridge over a river and assesses the probability of getting the contract to be 0.6.

b) A bank analyzes the balances in customers’ chequing accounts and assesses that when the balance exceeds $5000, the probability of that customer transferring some money to a savings account is 0.87.

c) A gambler tosses two dice and assesses the probability of getting two sixes to be 1/36.

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Related Book For  answer-question

Business Statistics

ISBN: 9780133899122

3rd Canadian Edition

Authors: Norean D. Sharpe, Richard D. De Veaux, Paul F. Velleman, David Wright

Question Details
Chapter # 7
Section: Exercises
Problem: 5
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Question Posted: June 24, 2019 10:42:39