bmaggie

Each lottery ticket discloses the odds of winning. These odds are based on:

A) a priori probability.

B) past lottery history.

C) the best estimate of the Department of Gaming.

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An a priori probability is based on formal reasoning rather than on historical results or subjective opinion.

bmaggie

Last year, the average salary increase for poultry research assistants was 2.5%. Of the 10,000 poultry research assistants, 2,000 received raises in excess of this amount. The odds that a randomly selected poultry research assistant received a salary increase in excess of 2.5% are:

A) 20%.

B) 1 to 5.

C) 1 to 4.

bmaggie

Each lottery ticket discloses the odds of winning. These odds are based on:

A) a priori probability.

B) past lottery history.

C) the best estimate of the Department of Gaming.

bmaggie

Which of the following is an a priori probability?

A) On a random draw, the probability of choosing a stock of a particular industry from the S& 500.

B) For a stock, based on prior patterns of up and down days, the probability of the stock having a down day tomorrow.

C) The probability the Fed will lower interest rates prior to the end of the year.

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A priori probability is based on formal reasoning and inspection. Given the number of stocks in the airline industry in the S&500 for example, the a priori probability of selecting an airline stock would be that number divided by 500.