Why
are violations of stochastic dominance considered irrational
behaviour rather than taste of risk? How can violations of
stochastic dominance be observed in subjective probability
weighting curves?
Explain in plain language how a standard probability weighting
function (i.e. underestimating the probability of very likely
events and overestimating the probability of very unlikely events)
can lead a person to simultaneously gamble and purchase
insurance
1a.
what is the difference between experimemtal, theoretical, and
subjective proabailites
b. how can probability theory be used in reali life
please answer part a & b in 3-4 sentences for a thumbs up
thank you
Bayesian probability is subjective insofar as we can start with
almost any prior probability we want. Why are we then able to say
that Bayesian probability can give us an accurate understanding of
what the probability of an event is?
What is probability? Describe classical, empirical, and
subjective probability, and provide "real-world" examples of each.
How can each of these types of probability apply to the business
world? Do you think any one type is more useful in business than
the others? Why or why not?
How can mislabeling subjective and objective claims negatively
impact the quality of a person’s thinking. You might try thinking
of claims you could hear in a hospital or another work-related
environment. If a person has confused objective with subjective or
fact with opinion, what is the solution?