4. Probability
Basic Concepts of Probability
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
In the context of probability, an effective guiding policy is supported by and stays consistent through the use of which of the following?
A
Descriptive statistics
B
Regression analysis
C
Random sampling
D
Axioms of probability
Verified step by step guidance1
Understand the context of the question: The problem is asking about the foundational principles that support and ensure consistency in probability-related policies.
Recall the definition of axioms of probability: These are the fundamental rules or principles that form the basis of probability theory, such as the probability of an event being between 0 and 1, the total probability of all possible outcomes equaling 1, and the additive rule for mutually exclusive events.
Compare the given options: Descriptive statistics summarize data, regression analysis models relationships between variables, and random sampling is a method for selecting a subset of a population. None of these directly establish the foundational rules of probability.
Recognize that the axioms of probability are the correct answer: They provide the theoretical framework that ensures consistency and validity in probability calculations and policies.
Conclude that understanding the axioms of probability is essential for any probability-related analysis or decision-making process in business statistics.
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