Which of the Following Represents a Subjective Probability

question 35

Multiple Choice

Which of the following represents a subjective probability?

• A) The probability of rolling a 2 on a single die is one in six.
• B) Based on a conducted experiment, the probability of tossing a head on an unfair coin is 0.6.
• C) A skier believes she has a 10% chance of winning a gold medal.
• D) Based on past observation, a manager believes there is a three-in-five chance of retaining an employee for at least one year.

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Definitions:

Supply

The total amount of a good or service available for purchase at any given price.

Surplus

The situation where the quantity of a good or service supplied exceeds the quantity demanded, often causing downward pressure on price.

Shortage

Situation in which the quantity demanded exceeds the quantity supplied.

Extraction Costs

The expenses associated with the removal of raw materials from the earth, such as labor, energy, and equipment costs.