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Subjective probability is anyone’s opinion that is not based on any scientific theory or formulae. There may be no possibility of the event to take place, but to interpret it one should follow certain rules to make it workable.
It is considered a kind of degree of belief predicted on the outcome of other related events, where the results are mostly changeable.
It may not be suitable for all areas; however, it involves the views of experts in the field, like investment bankers’ opinion about long term investment in stocks, investing in the future or calculating GDP, if it will happen or not.
There are drawbacks of using such a system as it is mostly based on the individual’s viewpoint and analysis of a situation.
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