When the true probability of an event is unknown, individuals tend to:

A) form subjective probabilities when assessing that event.
B) avoid the event for which they cannot estimate probabilities.
C) assign very small probabilities to those events.
D) ignore the possibility that those events will occur.

True Probability

The actual likelihood of an event occurring, often contrasted with estimated probabilities derived from models or assumptions.

Subjective Probabilities

The individual's personal judgment or estimate of the likelihood of an event occurring, based on their own knowledge and experience.

Event

An occurrence or happening, especially one of significance.