Question

Potential investors for a new housing community would like an estimate for the probability that 80%...

Potential investors for a new housing community would like an estimate for the probability that 80% of the lots will be sold by the end of the first six months of sales.

Relative frequency definition

Subjective definition

Homework Answers

Answer #1

We know that relative frequency definition gives us probability of a particular event based on the previous data values

and

subjective definition gives us the probability of a particular event based on the experience or estimation.

In the given case, we can see that there is no previous data provided for the probability, so it is not an example of relative frequency definition

it is an example of subjective definition because the probability is based on the estimation

therefore, option B is correct answer (SUBJECTIVE DEFINITION)

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