A company has a new cell phone product under development in the research and development (R&D) lab. It will increase the megapixel capability of cell phone cameras to the 12+ range. The head of R&D made a presentation to the company CEO stating that the probability the company will earn a profit in excess of $20 million next year is 80%. What was the method used to make this probability assessment?

Choose the correct answer below.

A.

While the head of R&D may have experience predicting profits, this is a subjective probability assessment.

B.

The head of R&D knows the increase in the megapixel capability and the total megapixel capability, so this is a classical probability assessment.

C.

The head of R&D and the CEO are different people, so this is an independent probability assessment.

D.

Since the head of R&D knows the increase in profits after each increase in the megapixel capability, this is a relative frequency assessment