Probability is a numerical value that describes the chance that something will happen. Probability can be expressed as a decimal, fraction, or whole number. There are three types of probability including: classical, empirical, and subjective. The classical and empirical probabilities are objective approaches. (Lind, Marchal, & Wathen, 2015)

Haven’t Found The Relevant Content? Hire a Subject Expert to Help You With
Post Your Own Question And Get A Custom Answer
Hire Writer

  Classical probability is based on the assumption that the outcomes of an experiment are equally likely. The probability of an event is found by dividing the number of favorable outcomes by the number of possible outcomes. It is only appropriate to use classical probability when all events are equally likely. A business example would be that there are seven males and three females that are interviewing to work at your same place of employment. The probability of your boss choosing a female is 3/10 or .3. (Lind, Marchal, & Wathen, 2015)

  Empirical probability is based on the number of times an event occurs as a proportion of a known number of trials. Empirical probability is found by deciding the number of times the event occurs by the total number of observations. Empirical probability should be used to determine future events. (Lind, Marchal, & Wathen, 2015) For example, your research indicates that seventy-five out of one hundred small businesses fail within their first year. You can conclude that 75/100 or 3/4 of small business fail within one year. Therefore, you should make smart business decisions so that you do not fail as well. (Writer, 2013)

  Subjective probability is when there is little or no experience or information on which to base a probability. There is no mathematical equation to calculate subjective probability. Subjective probability should be used for estimations based on your beliefs or feelings. For example, you can estimate the likelihood that your business will profit 10% more in 2017 than it did in 2016. (Lind, Marchal, & Wathen, 2015)

Lind, D. A., Marchal, W. G., & Wathen, S. A. (2015). Statistical techniques in business & economics. New York, NY: McGraw-Hill Education.

Writer, L. G. (2011, October 13). What Is the Importance of Probability Rules in a Business? Retrieved March 20, 2017, from http://smallbusiness.chron.com/importance-probability-rules-business-31263.html.


What are the classical, empirical, and subjective approaches to probability, and when is it appropriate to use each approach? Give business examples to support the different parts of your answer.

            Even though there are different approaches to probability such as the ones listed in the topic question.  I do feel it is important to know what probability is.  The book states that probability is a value between zero and one, inclusive, describing the relative possibility an event will occur (Lind, Marchal, & Wathen, 2015). Some important terms that are associated with probability are experiment, outcome and event.  Experiment is process that leads to the occurrence of one and only one of several possible outcomes while the outcome is a particular result of an experiment.  An event is a collection of one or more outcomes of an experiment. (Lind, Marchal, & Wathen, 2015).   

            The classical approach to probability based on an assumption that the outcomes of the experiment are equally likely (Lind, Marchal, & Wathen, 2015).  When using this approach, you divide the number of favorable outcomes by the number of possible outcomes.  Business use the classical approach when they do not know the likelihood of certain events.  For example, if a business is making a decision that has X amount of outcomes that are equally likely, even though they are not affected by the number of times you try.  You can cut the number in half with the classical approach (Chrone).  The book gives us the example that this approach is appropriate when used for lotteries and finding out the probability of winning when picking X amount of numbers (Lind, Marchal, & Wathen, 2015).  

            Empirical probability is the probability of an event happening is the fraction of the time similar events have happened in the past.  Solving this approach requires taking the number of times the event has occurred and dividing it by the total number of observations (Lind, Marchal, & Wathen, 2015). This event is based on what is called the “law of large numbers”.  Empirical probability is closely related to relative frequency.  Therefore, this approach has been used with the capital asset pricing model even though the results turn our slightly mixed (Investopedia).  One of the best examples for empirical probability is tossing a coin in the air.  This approach will help determine the relative frequency of the coin landing on heads or tails (Lind, Marchal, & Wathen, 2015).   

            The third and final approach is subjective probability.  Subjective probability is the likelihood of a particular event happening that is assigned by an individual based on whatever information is available.  Examples for this approach include outcomes of sporting events, automobile accidents and for cuts or gaines in the U.S. economy (Lind, Marchal, & Wathen, 2015).   


Lind, D.A., Marchal, W.G., & Wathen, S.A. (2015). Statistical Techniques in Business and Economics. New York, NY: McGraw-Hill Education.

Staff, I. (2007, May 28). Empirical Probability. Retrieved March 21, 2017, from http:// L. G. (2011, October 13). What Is the Importance of Probability Rules in a Business? Retrieved March 21, 2017, from http://smallbusiness.chron.com/importance-probability-rules-business-31263.html

Calculate the price of your order

Select your paper details and see how much our professional writing services will cost.

We`ll send you the first draft for approval by at
Price: $36
  • Freebies
  • Format
  • Formatting (MLA, APA, Chicago, custom, etc.)
  • Title page & bibliography
  • 24/7 customer support
  • Amendments to your paper when they are needed
  • Chat with your writer
  • 275 word/double-spaced page
  • 12 point Arial/Times New Roman
  • Double, single, and custom spacing
  • We care about originality

    Our custom human-written papers from top essay writers are always free from plagiarism.

  • We protect your privacy

    Your data and payment info stay secured every time you get our help from an essay writer.

  • You control your money

    Your money is safe with us. If your plans change, you can get it sent back to your card.

How it works

  1. 1
    You give us the details
    Complete a brief order form to tell us what kind of paper you need.
  2. 2
    We find you a top writer
    One of the best experts in your discipline starts working on your essay.
  3. 3
    You get the paper done
    Enjoy writing that meets your demands and high academic standards!

Samples from our advanced writers

Check out some essay pieces from our best essay writers before your place an order. They will help you better understand what our service can do for you.

Get your own paper from top experts

Order now

Perks of our essay writing service

We offer more than just hand-crafted papers customized for you. Here are more of our greatest perks.

  • Swift delivery
    Our writing service can deliver your short and urgent papers in just 4 hours!
  • Professional touch
    We find you a pro writer who knows all the ins and outs of your subject.
  • Easy order placing/tracking
    Create a new order and check on its progress at any time in your dashboard.
  • Help with any kind of paper
    Need a PhD thesis, research project, or a two-page essay? For you, we can do it all.
  • Experts in 80+ subjects
    Our pro writers can help you with anything, from nursing to business studies.
  • Calculations and code
    We also do math, write code, and solve problems in 30+ STEM disciplines.

Frequently asked questions

Get instant answers to the questions that students ask most often.

See full FAQ
  • What if I’m dissatisfied with the paper I get?

    The average quality score at our professional custom essay writing service is 8.5 out of 10. The high satisfaction rate is set by our Quality Control Department, which checks all papers before submission. The final check includes:
    • Compliance with initial order details.
    • Plagiarism.
    • Proper referencing.
    If for some reason we happen to leave a mistake unnoticed, you are invited to request unlimited revisions of your custom-written paper. For more information, check our Revision Policy. We will do our best to make your experience with Familiar Essays enjoyable.
  • I need an essay on the same day. Is it something you can do?

    Sure. Our writing company offers a fast service with an 8-hour deadline for orders up to master’s level. Make sure to specify the deadline in the order form and our writers will write a paper within the indicated timeslot. Just proceed to submit your requirements here Once you order a custom-written essay, our managers will assign your order to the well-suited writer, who has the best skills and experience for preparing your specific assignment. You can also request one of these extra features:
    • Choose the Writer’s Samples option – study 3 randomly-provided pages from orders that have been written by the assigned writer.
    • Request a specific writer – choose an academic writer from the dropdown list in the order’s form (optional for returning customers).
    You can be sure that your custom writing order will be accomplished by one of our 400+ professional academic writers. They all pass a series of tests to prove their writing prowess and hold the reputation of being the most professional in the industry. Want to make sure writer’s skills match your needs? Get more details on how to choose the appropriate author.
  • How can I be sure your writing service is not a scam?

    We understand that a shade of mistrust has covered the paper writing industry, and we want to convince you of our loyalty. Apart from high-quality writing services, we offer:
    • The chances of students to boost writing skills in a quick and effective way.
    • The opportunity to manage studies and free time in an enjoyable manner.
    • The possibilities to improve overall academic performance.
    Our custom writing company has been working for more than 12 years and always puts quality and clients’ needs first. Our operations are legally documented, we are easily accessible online and offline,
  • Is it legal to use your professional writing service?

    Yes. Custom writing help is not prohibited by any university or college. It’s a 100% legal way of getting professional assistance with paper writing. Hiring writers from an essay writing company is in many ways similar to consulting a tutor – we help you solve the writing issues at hand.
  • How does your service work?

    Our custom writing service is a reliable solution on your academic journey that will always help you if your deadline is too tight. You fill in the order form with your basic requirements for a paper: your academic level, paper type and format, the number of pages and sources, discipline, and deadline. Then, you describe the specific details of the paper you need: add the topic, write or paste the instructions, and attach files to be used, if you have them. After that, an online customer support representative chooses the best writer that specializes in your discipline and assigns him or her to complete the paper according to your requirements. When the paper is ready, we check it for plagiarism and send it to you. If you want to change something, you can request a free revision.
See full FAQ

Take your studies to the next level with our experienced specialists

Live ChatWhatsApp