What Method of Probability Assessment Would Most Likely Be Used

question 95

Multiple Choice

What method of probability assessment would most likely be used to assess the probability that a major earthquake will occur in California in the next three years?

• A) Classical probability based on the ratio of the number of ways the event can occur
• B) Relative frequency based on previous history
• C) Subjective probability based on expert opinion
• D) Independent probability based on two unrelated outcomes

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Definitions:

Legal Structures

Refers to the types of business entity formations available, such as sole proprietorships, partnerships, corporations, and limited liability companies, affecting legal liability and tax implications.

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities.

Mutual Agency

The legal principle in a partnership where each partner is empowered to make decisions and enter into contracts on behalf of the partnership.

Partnerships

A form of business structure where two or more individuals share ownership, profits, and liabilities, operating under a legal partnership agreement.