What does Subjective Probability mean? Read on to discover the definition & meaning of the term Subjective Probability - to help you better understand the language used in insurance policies.
A subjective probability is the perceived chance of a certain outcome happening. It is not an actual mathematical calculation of the odds, but rather a measure based on personal opinion, beliefs, prejudices, and emotions. For example, a fan of the Boston Red Sox might say their favorite team has a 50% chance of winning the World Series, despite not having any statistical evidence. The probability isn't based on the team's record but on the fan's personal beliefs and confidence.
We hope the you have a better understanding of the meaning of Subjective Probability.