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:

Cash

A company's currency or assets that can be immediately used for transactions or payments.

Supplies

Items that are used in the day-to-day operations of a business, often categorized as a current asset on the balance sheet.

Income Summary

The income summary account is used in accounting to transfer revenue and expense account balances to determine the net income or loss for a given period before closing them to the retained earnings account.

Owner's Capital

The amount of money and assets invested in a business by its owner, representing the owner's claim against the company's assets.