**What is Subjective Probability?**

The possibility of something occurring solely from one person's perspective or opinion is referred to as **Subjective Probability**. It varies from individual to individual and is not dependent on market knowledge or previous facts. Furthermore, it is predicated on a person's individual viewpoint rather than on facts.

**Understanding of Subjective Probability**

The probability theory is based on the assumption that an occurrence is more likely to happen when certain elements are present. It also includes the probability of a particular situation as a result of the event happening. In most cases, a statistical method is used to calculate the probability of an outcome. Subjective probability is a sort of chance that is based on human perceptions of the possibility of an incident. As a result, subjective probability can be influenced by human preferences and opinions. Individual backgrounds, situations, religious views, and a number of other factors can influence subjective probability.

Because individuals may have a distinct viewpoint or set of ideas about a certain scenario, the subjective probability conclusion will not be the same between multiple individuals. The subjective probability technique is utilized for decision-making in a variety of fields including sales, economy, and management. For instance, a marketing manager may estimate that his firm has an 80% probability of winning the contract he has negotiated. This proportion cannot be determined by multiple trials or equations.

**Practical Example**

Jacob just finished an interview for a post as a brand manager, and he seeks to guess the result. He didn't have any statistical evidence to establish the chance that he'll get the job. So, he made a forecast based on subjective probability. He projects a 90% probability of getting the job based on his concepts and background, because he met people at the organization, heard about how he could progress in the business, and got a follow-up message, all of which are indications of a great interview.

**In Sentences**

- Subjective probability is used to determine the probability of an event happening based on an individual's perception or instinct.