Identify Each of the Following Examples as the Analytic, Relative

question 58

Short Answer

Identify each of the following examples as the analytic, relative frequency, or subjective view of probability based on the example of a brother and sister playing scrabble:
a. If the brother and sister are equally matched, there is a .50 probability that each will win the game.
b. If the sister won 3 of the last 4 games, the probability that she will win this one is .75.
c. The brother believes there is an 80% chance that he will beat his sister this time.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and equipment costs.

Net Income

The net income of a business following the deduction of all costs and taxes from its earnings.