David W. answered • 05/10/15
Tutor
4.7
(90)
Experienced Prof
First, be very sure that you understand the definitions of theoretical probability and experimental probability.
Let me give you an example of experimental probability: Periodically, I buy Dairy Queen gift coupons ($1, $2, and $3) to give to people when I see them doing very nice things (e.g., exceptional customer service). I’ve talked to the store owner, and they tell me that roughly half of the coupons get redeemed (that is our experimental probability = 0.5 or 50%). Now, even though people are often surprised and pleased to receive a coupon, the store owner can predict that he will make $30 profit if I buy $60 worth of coupons today (that is his prediction based on past experience).
If the store owner had no experimental data at all, he would only guess at how much profit he might make. Note: his profit might still be different than half, but 50% is a good first guess.
Let me give you an example of experimental probability: Periodically, I buy Dairy Queen gift coupons ($1, $2, and $3) to give to people when I see them doing very nice things (e.g., exceptional customer service). I’ve talked to the store owner, and they tell me that roughly half of the coupons get redeemed (that is our experimental probability = 0.5 or 50%). Now, even though people are often surprised and pleased to receive a coupon, the store owner can predict that he will make $30 profit if I buy $60 worth of coupons today (that is his prediction based on past experience).
If the store owner had no experimental data at all, he would only guess at how much profit he might make. Note: his profit might still be different than half, but 50% is a good first guess.
