Ask AI: How does classical probability differ from subjective probability

Classical probability and subjective probability approach the concept of probability in two different ways. 1. Classical Probability: This approach to probability is mainly used when each outcome in a sample space is equally likely to occur. This is based on the possible outcomes and not on any prior knowledge or intuition about a situation. Known also as theoretical probability, it calculates the probability of an event happening based on the total number of outcomes. Classical probability uses the formula: Probability of Event = Favorable Outcomes / Total Possible Outcomes. For example, in tossing a fair coin, we know there are 2 possible outcomes (heads or tails). Hence, the classical probability of getting a head is 1/2=0.5. 2. Subjective Probability: This type of probability relies heavily on personal judgment, intuition, or experience. It is used when conditions or situations are uncertain and the outcomes are not equally likely. The subjective probability may vary from person to person, as it largely depends on an individual's personal judgment or belief. For example, forecasters predicting the probability of a team winning a football match may rely on their subjective judgment about the team's form, player's skill, historical performance etc. In summary, classical probability is based on equality of outcomes while subjective probability is based on personal judgment or experience.