chapter 4

Question 1

classical method of assigning probabilities

Answer 1

probabilities assigned based on laws and rules (ne/N)

Question 2

relative frequency of occurrence method of assigning probabilities

Answer 2

probabilities assigned based on cumulated historical data (# of times event has occurred in past/total number of opportunities for event to have occurred)

Question 3

subjective method of assigning probabilities

Answer 3

probabilities assigned based on the feelings or insights of the person determining the probability

Question 4

Describe what is meant by “inferential statistics.”

Answer 4

Inferential statistics is the branch of statistics that uses estimation and hypothesis testing to make conclusions about a population based on a sample.

Question 5

Which branch of statistics is supported by probability theory?

Answer 5

Inferential statistics

Question 6

What are the three methods of assigning probabilities?

Answer 6

Classical, relative frequency of occurrence, and subjective probability

Question 7

What’s the difference between the classical and relative frequency methods?

Answer 7

Classical probabilities are assigned based on laws and rules; this method involves an experiment that produces outcomes whose probabilities are determined as a ratio of the number of items in an experiment to the total number of items in the population. The relative frequency of occurrence assigns probabilities on the basis of cumulated historical data.A probability under this method is determined as the number of times an event has occurred in the past divided by the total number of opportunities for the event to have occurred.The key difference in the calculation is in the denominator used.

Question 8

event

Answer 8

an outcome of an experient

Question 9

elementary events

Answer 9

events that cannot be decomposed or broken down into other events

Question 10

sample space

Answer 10

a complete roster or listing of all elementary events for an experiment