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Unformatted text preview: 1. Briefly, what is probability (include in this the 3 "approaches" to probability discussed in the early part of chapter 5) . The probability of an event is a number that measures the relative likelihood that the event will occur. The probability of an event A , denoted P ( A ), must lie within the interval from 0 to 1: 0 ≤ P ( A ) ≤ 1 Empirical approach to assign probabilities by counting the frequency of observed outcomes ( f ) defined in our experimental sample space and dividing by the number of observations (n). The probability is obtained a priori without actually doing an experiment. Classical approach to probability values are generated from theoretical values in the class research approach. Such calculations are rarely possible in business situations. Subjective approach to probability is needed when there is no repeatable random experiment. 2. Please (1) work the following problems, (2) tell me what rule or principle you used to solve them and (3) then look at others' answers to check yourself and that person -- let's see if we can...
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- Spring '10
- Probability, Probability theory, President of the United States, Accounting Major