The long-run relative frequency of an event based on the assumption of an infinite number of observations with no change in the underlying conditions is called
A)objective probability.
B)objective risk.
C)subjective probability.
D)subjective risk.

Question

Quizplus · Accepted Answer

The definition given in the question is of objective probability, which is based on an infinite number of observations with no change in the underlying conditions. Objective risk and subjective risk are both related to the evaluation of risks, but not probabilities. Subjective probability is based on personal beliefs and opinions, rather than actual observations or data.

The Long-Run Relative Frequency of an Event Based on the Assumption