THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The production manager at a local manufacturing plant is concerned about work stoppages in the four production lines.In particular,the manager is evaluating the likelihood of the next stoppage occurring on production line 1.
-Based on his knowledge of the causes of stoppages,the manager states that the probability that production line 1 is stopped next is 25%.This is an example of:
A)subjective probability.
B)classical probability.
C)relative frequency probability.
D)Bayesian probability.

Question

Quizplus · Accepted Answer

The probability given by the production manager is based on his subjective knowledge and judgement of the causes of stoppages on the production lines, making it an example of subjective probability. Classical probability is based on the assumption of equal probabilities for all possible outcomes, relative frequency probability is based on observed frequencies in past events, and Bayesian probability involves updating probabilities based on new information.