Question

A manager at a pizza restaurant is considering giving Zhu a raise. The manager estimates that there is an 80% chance that Zhu will quit if he does not get a raise. Is this empirical, classical, or subjective probability?

Answer 1

As the manager is thinking of a raise only on the basis of his prior experience. Therefore A type of probability that is derived from someone's experience or judgement, is called a subjective property. Therefore subjective probability is the required answer here.

Note that empirical probability is the type of probability which is computed as the ratio of the favourable number of cases with the total number of cases. On the other hand, when the outcomes are equally likely for an outcome then the probability of each outcome happening is equal which is an example of classical probability.

Therefore Subjective probabiltiy is the required answer here.