Question

1. classify each statement as an example of classical probability, empirical probability, or subjective probability.

a. the probability that a student will get a c or better in a statistics course is about 70%.
b. the probability that a new fast - food restaurant will be a success in chicago is 35%.
c. the probability that interest rates will rise in the next 6 months is 0.50.
d. the probability that the unemployment rate will fall next month is 0.03.

Explanation:

a. This probability is based on past data/observations of student performance in statistics courses, which defines empirical probability.
b. This probability is a judgment or estimate with no fixed historical data or equal likelihood basis, so it is subjective probability.
c. This probability is a personal judgment or estimate about future interest rate changes, with no equal outcomes or empirical data to confirm it, so it is subjective probability.
d. This probability is an estimate based on expert judgment or analysis without strict empirical or classical probability foundations, so it is subjective probability.

Answer:

a. Empirical probability
b. Subjective probability
c. Subjective probability
d. Subjective probability