Subjective probabilities are
A) determined from actual data on part experiences.
B) used in the presence of uncertainty.
C) almost never used from decision making.
D) are based on feelings or hunches.
E) c and d

Question

Quizplus · Accepted Answer

Subjective probabilities are based on individual feelings, beliefs, and hunches rather than actual data. They are used in decision making when there is uncertainty, but they are not determined from actual data on past experiences. Therefore, choice D is the correct answer. Choice E is incorrect because subjective probabilities are actually used quite frequently in decision making.

Subjective Probabilities Are