BUAL 2600 Chen Yan - Test 2 || A+ GRADED.

BUAL 2600 Chen Yan - Test 2 || A+ GRADED.
The set of all possible experimental outcomes correct answers Sample space

Experimental outcomes in the sample space correct answers Sample space outcomes

A measure of the chance that an experimental outcome will occur when an experiment is carried
out correct answers Probability

Any process if observation with uncertain outcome correct answers experiment

The possible outcomes for an experiment correct answers experimental outcome

What method do you use for equally possible outcomes? correct answers Classical

- If an experiment has n possible outcomes, the ___________ method will assign a probability of
1/n to each outcome
- Experiment: rolling a die
- Sample space: S = {1,2,3,4,5,6}
- Probabilities: each sample point has a 1/6 chance of occurring. correct answers classical

What method is used in this example:
- Estimate the probability that a randomly selected consumer prefers coca-cola to all other soft
drinks
- 1000 customers selected and 140 said they prefer coca cola
- Probability is 140/1000=.14 correct answers relative frequency

What method is used to assess based on experience, expertise, or intuition? correct answers
subjective

What method is used in this example:

- Tom and Judy make an offer to purchase a house
- Possible outcomes:
E1= offer is accepted / E2 = offer is rejected

- Judy's probability estimates:
P(E1) = 0.8
P(E2) = 0.2

- Tom's probability estimates:
P(E1) = 0.6
P(E2) = 0.4 correct answers Subjective

Set of sample space outcomes correct answers event