What Is Subjective Probability?
Subjective probability is a measurement of a likely outcome determined by an individual’s personal viewpoint. Unlike most forms of probability, which are based on mathematics, subjective probability has little to no actual mathematical data involved in its outcome. The most important factor in this form of probability is the viewpoint of the individual making the decision. This is often a first or final step in determining an unpredictable outcome and is a common means of assessing group mentality or making decisions without data. In most cases, probability is the study of situations to determine their absolute outcome. The likelihood an area will receive rain, that a person will turn left at an intersection or any number of other choices is broken down into a series of mathematical equations. These numbers are manipulated to find underlying causal factors, which will show the likelihood of certain actions taking place.
