4Q- 27 If an analyst estimates the probability of an event for which there is no historical record, this probability is best described as: 4Q- A. a priori. 4Q- B. objective. 4Q- C. empirical. 4Q- D. subjective. ------------------------------------------------------------------------ my answer is D B is a made up term and C is obvious wrong due to no history. A. a prior probability is determined using a formal reasoning and inspection process,like quantitative analyses. The Q just says estimate the porbability, it’s more like subjective.
D is correct. You don’t estimate a priori probability, it’s just what it is. You don’t estimate that a flip of a coin gets you a tail with 50% prob. You conclude that, assuming a fair coin.