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

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

a) An insurance company analyzes past automobile claims and assesses the probability of a male driver aged 18–25 making a claim to be 0.43 in any given year.

b) An economist assesses the probability of the Bank of Canada increasing the interest rate next month to be 0.4.

c) One door prize is given to a randomly selected person attending an event. There are 50 people attending the event. An attendee assesses the probability that he or she will get the prize as 0.02.

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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: 6
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Question Posted: June 24, 2019 10:42:44