In a probability model with 5 possible outcomes a All possib

In a probability model with 5 possible outcomes

(a) All possible outcomes must have an equal probability, such as to satisfy the requirement that the P_(O) of each equals .20.

(b) The possible outcomes do not have to have an equal probability of occurring, but the Sum of the probabilities must equal 1.00 and none may be P_(o) < 0.0.

(c)   There is insufficient information to formulate an answer to this question;

(d) Must have equal expected values.

(e) None of the above.

Solution

(b) The possible outcomes do not have to have an equal probability of occurring, but the Sum of the probabilities must equal 1.00 and none may be P_(o) < 0.0.

It is not necessary that all outcomes are equally likely. Hence probability for each outcome need not be equal to 0.02 always.

But the condition is always p lies between 0 and 1.

and Total of all probabilities = 1.