Probability concepts are used to determine a number of things we observe in everyday life.
The odds of your favorite football team winning are determined by the betting site’s estimate of the probability of that win.
How much you pay for car insurance is based on the insurance company’s estimate of your chances of having an accident.
The cost of life insurance depends on the insurance company’s estimate the probability that the policy holder will live to a certain age,
Consider a situation that you can use your understanding of probability to make an informed decision.
In reference to that situation, answer the following question using at least 175 words.
How would you determine the probability that you need to know – what sources of information are available to you for this determination. If someone else can provide you with the probability, who would that be?
How might you use the probability that you found to determine what you might do?
What are the possible benefits and limitations of this approach?