Quantitative Methods Q145
0. Which of the following is most likely a subjective probability?
- A
The probability that KSE 100 index will outperform LSE 100 index over a 5 year period.
- B
The probability of a particular outcome when only five possible outcomes exist.
- C
The probability of Kay Electronics going bankrupt changes after adjusting it to the reduced confidence in electronics’ companies.
- Option : C
- Explanation : Empirical: it is based on past data. A Priori: it is based on logical reasoning. Subjective: it is based on personal judgment.
