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12. What is the difference between subjective and objective probability? Objecti

ID: 3062218 • Letter: 1

Question

12. What is the difference between subjective and objective probability? Objective is based on all available information while Subjective is only on old available information Objective is based on the throw of a dice while Subjective is based on the ability to estimate the value of a factorial Objective and Subjective are exactly the same, there is no difference Objective probability may assign probabilities based on equally likely outcomes or based on relative frequencies while Subjective is based on available information Objective is used to assign probabilities to Objects (dice, cars, computers) while Subjective is to assign probabilities to people (Sports games, being early or late to class) a. b. c. d. e. 13. Two events are mutually exclusive and collectively exhaustive when: They are performed at the same time in the same place The occurrence of one event means no other can occur and at least one event must occur when the experiment is conducted. The ability to estimate probabilities is limited to the data that is available therefore the events that happen are both. Mutually Exclusive means the events exclude each other but both can be present and collectively exhaustive mean one event must be collected while the other must be exhausted. It means that we must use the law of large numbers and Classical probability to answer the question. a. b. c. d. e.

Explanation / Answer

12. Difference between subjective and objective probability:-

Ans - (d) Objective probability may assign probabilities based on equally likely outcomes or based on relative frequencies while subjective is based on available information. As the objective probabilities are based on the calculations while subjective probability can change as our knowledge of the event increases.

13.Two Events are mutually exclusive and collectively exhaustive when?

Ans - both (b) and (d) are right as two events will be mutually exclusive when there is no intersection between both events and collectively exclusive when both events will form the complete set.

e.g: A and B are two events then,

if A intersection B = 0; Mutually exclusive,

and at the same time,

if A Union B = Sample; collectively exhaustive.

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