Classify the statement as an example of classical probabilit

Classify the statement as an example of classical probability, empirical probability, or subjective probability. The probability that cab fares will rise during the winter is 0.05

Solution

Classical Probability is based on the assumption that the outcomes of an experiment are equally likely, for example, rolling a fair dice.

Empirical Probability is based on the number of times an event occurs as a proportion of a known number of trials. An example of this would be predicting the possibility of a baseball player hitting the ball, based on his past performance.

Subjective Probability is based on an individual\'s opinion or experience, using whatever information is available. A good example is: Estimating the likelihood that the U.S. budget deficit will be reduced by half in the next 10 years.

The prime interest rate is set by the Federal Reserve, based on the health of the U.S. Economy. This means interest rates are established using the latest economic information available. Therefore, the statement that interest rates will rise during the summer is SUBJECTIVE, (i.e., an opinion).
Answer-subjective probability