12. The probability that the Dow Jones stock index will close above 18000 at the end of the

year is an example of
(a) classical probability.
(b) subjective probability.
(c) independent probability.
(d) priory probability.

13. The probability calculated based on observing a process (or experiment) n times and
counting the number of times an event of interest (say, X) occurs is known as
(a) classical probability.
(b) marginal probability.
(c) conditional probability.
(d) relative frequency approach of probability.

14. The probability that a person can get infected with a rare type of blood disorder is very
small. Suppose that a blood test performed on 10,000 people showed that two persons
tested positive that is, a 0.02% chance of getting this type of blood disorder. This
probability measure was calculated using
(a) conditional probability approach.
(b) marginal probability.
(c) relative frequency approach
(d) classical approach.

12.(b) Subjective probability.

13. (a) classical probability.
14. (c) relative frequency approach

12. To determine the probability that the Dow Jones stock index will close above 18000 at the end of the year, we would need to consider various factors such as historical data, economic indicators, and expert opinions. The probability in this case would be based on subjective probability, as it relies on individual judgment and knowledge rather than using mathematical principles or empirical observations.

13. The probability calculated based on observing a process (or experiment) n times and counting the number of times an event of interest (say, X) occurs is known as the relative frequency approach of probability. In this approach, the probability of an event occurring is estimated by dividing the number of times the event occurred by the total number of observations. This approach allows for empirical observation and data collection to calculate the probability.

14. The probability measure calculated based on the blood test performed on 10,000 people, where two persons tested positive, is an example of the relative frequency approach of probability. The probability is calculated by dividing the number of people who tested positive (2) by the total number of people tested (10,000). This approach relies on the observed relative frequency of events occurring in a sample to estimate the probability of those events occurring in a larger population.