In the context of probability, an effective guiding policy is supported by and stays consistent through the use of which of the following?

• A. Descriptive statistics
• B. Regression analysis
• C. Random sampling
• D. Axioms of probability

Answer: (D)

Verified step by step guidance

1. Understand the context of the question: The problem is asking about the foundational principles that support and ensure consistency in probability-related policies.
2. Recall the definition of axioms of probability: These are the fundamental rules or principles that form the basis of probability theory, such as the probability of an event being between 0 and 1, the total probability of all possible outcomes equaling 1, and the additive rule for mutually exclusive events.
3. Compare the given options: Descriptive statistics summarize data, regression analysis models relationships between variables, and random sampling is a method for selecting a subset of a population. None of these directly establish the foundational rules of probability.
4. Recognize that the axioms of probability are the correct answer: They provide the theoretical framework that ensures consistency and validity in probability calculations and policies.
5. Conclude that understanding the axioms of probability is essential for any probability-related analysis or decision-making process in business statistics.