Identify the probability that is based on a person's beliefs and experiences, and belongs to the realm of behavioral economics rather than traditional rationality-based economics.
A)Empirical probability
B)Objective probability
C)Experiential probability
D)Philosophical probability
E)Subjective probability

Question

Quizplus · Accepted Answer

Subjective probability is based on a person's beliefs, experiences, or intuition rather than on objective data or precise calculation. It is often used in behavioral economics to understand how individuals make decisions under uncertainty, reflecting personal judgments or opinions about the likelihood of uncertain events.

Identify the Probability That Is Based on a Person's Beliefs