There Are Three Approaches to Determining the Probability That an Outcome

question 116

Essay

There are three approaches to determining the probability that an outcome will occur: classical,relative frequency,and subjective.For each situation that follows,determine which approach is most appropriate.
a.A Russian will win the French Open Tennis Tournament next year.
b.The probability of getting any single number on a balanced die is 1/6.
c.Based on the past,it's reasonable to assume the average book sales for a certain textbook is 6,500 copies per month.

---

Definitions:

Foreign Exchange Fluctuations

Variations in the value of one currency relative to another, impacting international trade and investments.

Spot Rate

The current market price for immediately exchanging one currency for another.

Forward Contract

A binding financial agreement to buy or sell an asset at a predetermined future date and price.

Journal Entries

The foundation of the double-entry bookkeeping system, journal entries record all financial transactions in a company's accounting system.