SOLUTION: A decision maker subjectively assigned the following probabilities to the four outcomes of an experiment: P(E1) = .10, P(E2) = .15, P(E3) = .40, and P(E4) = .20. Are these probabil

Algebra ->  Probability-and-statistics -> SOLUTION: A decision maker subjectively assigned the following probabilities to the four outcomes of an experiment: P(E1) = .10, P(E2) = .15, P(E3) = .40, and P(E4) = .20. Are these probabil      Log On


   

Question 1122002: A decision maker subjectively assigned the following probabilities to the four outcomes of an experiment: P(E1) = .10, P(E2) = .15, P(E3) = .40, and P(E4) = .20. Are these probability assignments valid? Explain.
Answer by Alex.33(110) About Me  (Show Source):
You can put this solution on YOUR website!
If there are JUST four outcomes of the experiment, it's invalid. Because .1+.15+.4+.2=.85, which is not equal to 1.
This is beacuse since the experiment has occurred, the possibility of getting an outcome, which equals the sum of all four kinds of outcomes' possibilities, should be one.


If there are other outcomes, it will be valid JUST if the sum of the possibilities of other outcomes is .15, but otherwise it will be invalid.