Which of the Following Is True About the Classical Definition

question 19

Multiple Choice

Which of the following is true about the classical definition of probability?

• A) It is based on judgment and experience.
• B) If the process that generates the outcomes is known, probabilities can be deduced from theoretical arguments.
• C) The probability that an outcome will occur is simply the relative frequency associated with that outcome.
• D) It is based on observed data.

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Definitions:

Variable Costs

Costs that change in proportion to the level of activities or volume of production in a business.

Fixed Costs

Expenses that do not fluctuate with changes in production level or sales volume.

Sales

Transactions between a seller and a buyer where the seller provides goods, services, or assets in exchange for money or other compensation.

Break-even Point

The point at which total cost and total revenue are equal, meaning no net loss or gain, and one has "broken even".