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

## Question:

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**

## 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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