Classification+and+comparison+&+contrats+draft+2

Classification   //**Prior probabilities: **// The probability of an event A, P (A), is the measure of the chance when this event occurs.
 * __Classical Probability: __** This type of probability takes an objective and may be viewed in two ways: a priori and a posteriori.

 P(A)= # of ways A can occur / # total possible outcomes.

P(A) = A (events corresponding to A) / S (total events in the sample space).   //**° Posterior probability: **// In the case that events do not have equal chance of occurrence, the problem of assigning probabilities happens to posterior. If an experiment is performed a large number of repeated times, N times for example, let n will be the number of times that happens an event E. <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-themecolor: text1;">Then observed that as <span style="color: red; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US;"> <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US;">N increases the n / N tends to a stable value p. This value p is called the probability of E and we write p (E). <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US;"> <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US;">
 * __<span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US;">Subjective Probability: __**<span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US;"> It refers to the probability of occurrence of an event based on previous <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-themecolor: text1;">experiences <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US;">, personal opinion, knowledge or intuition of <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-themecolor: text1;">an <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US;"> individual. In this case, after studying the information available, <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-themecolor: text1;">it <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US;"> is assigned a value of probability to events based on our degree of belief that the event might occur.

<span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US;"> <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US;">
 * __<span style="font-family: 'Arial','sans-serif';">Frequentist probability: __**<span style="font-family: 'Arial','sans-serif';"> <span style="background: #ebeff9; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US;">Repeating an experiment under the same conditions many times and repeat until the relative frequency of an event tends to stabilize when the total frequency increases.  <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US;"> It applies to randomized experiments that can be repeated under the same conditions the number of times desired.

//<span style="font-family: 'Arial','sans-serif';">Comparison & Contrast //

Both, the classical and the frequentist definition are based on random repetition of <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-themecolor: text1;">an <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US;"> experiment, but there are many experiments that can not be repeated under the same conditions and, therefore, can not apply the objective interpretation of probability. In such cases, it is necessary to see an alternative view, which isn’t <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-themecolor: text1;">depends <span style="color: red; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US;"> <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-themecolor: text1;">on <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US;"> repetition, so when applying subjective probability that is different of the other two, <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-themecolor: text1;">it's possible to <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US;"> make a personal opinion in which different observers may have <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-themecolor: text1;">different <span style="color: red; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US;"> <span style="color: black; font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US;">degrees of belief about possible outcomes, equally valid.