Question

When is it appropriate to use the followind distributions? a. Frequency: Historical; Probability: Historical b. Frequency:...

  1. When is it appropriate to use the followind distributions?

    a.

    Frequency: Historical; Probability: Historical

    b.

    Frequency: Future; Probability: Future

    c.

    Frequency: Future; Probability: Historical

    d.

    Frequency: Historical; Probability: Future

Homework Answers

Answer #1

The correct answer is option d.

Frequency: Historical; Probability: Future

Frequency distribution is plotted using historical data

Probability distribution is forward looking and is the plot of expected future data

Option a is incorrect because Probability distribution is not plotted using historical data

Option b is incorrect because Frequency distribution is not plotted using future data

Option c is incorrect because Frequency distribution is not plotted using future data and Probability distribution is not plotted using historical data

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