I a Subjective Probability Can Be Assigned to an Event

question 63

Multiple Choice

i. A subjective probability can be assigned to an event by an individual based on the individual's knowledge about the event. ii. The probability that you would assign to the likelihood that the Hamilton Tiger Cats will be in the Grey Cup this season must be between 0 and 10.
iii. A probability is a number from -1 to +1 inclusive that measures one's belief that an event resulting from an experiment will occur.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) and, (ii) are correct statements but not (iii).
• C) (i) and, (iii) are correct statements but not (ii).
• D) (ii) and, (iii) are correct statements but not (i).
• E) (i), (ii) and (iii) are all false statements.

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Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, essentially representing the owners' claim on the company.

Book Value

The net value of a company's assets found on its balance sheet, calculated as total assets minus intangible assets and liabilities.

Fair Market Value

The price at which an asset would change hands in a transaction between a willing buyer and seller, both having reasonable knowledge of all relevant facts.

Legal Parent

refers to the entity that owns or controls another entity through shareholding or other means, effectively having a controlling interest in another company.