Experimental vs. Theoretical Probability Math Example 4

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Example 4

hard
A simulation model predicts 25% of customers churn per month. After 6 months of actual data: 28%, 22%, 26%, 24%, 27%, 23%. Calculate the experimental mean, compare to theoretical, and determine if the model is reasonable.

Solution

  1. 1
    Experimental mean: (28+22+26+24+27+23)/6=150/6=25%(28+22+26+24+27+23)/6 = 150/6 = 25\% — matches theoretical exactly
  2. 2
    Variation: monthly values range from 22% to 28% — natural random variation around 25%
  3. 3
    Model assessment: the theoretical 25% is consistent with observed data; monthly fluctuations are noise around the signal (25%)
  4. 4
    Conclusion: the model is reasonable — long-run experimental mean converges to theoretical prediction

Answer

Experimental mean = 25% = theoretical prediction. Monthly variation is noise; model is reasonable.
Comparing simulation predictions to real data validates the model. Small sample-to-sample variation is expected; the key is whether the long-run average matches. This is how modelers validate whether their theoretical probability assumptions match reality.

About Experimental vs. Theoretical Probability

Theoretical probability is calculated from known outcomes (P=favorabletotalP = \frac{\text{favorable}}{\text{total}}), while experimental probability is estimated from actual trials (Ptimes event occurredtotal trialsP \approx \frac{\text{times event occurred}}{\text{total trials}}). As the number of trials increases, experimental probability tends to approach theoretical probability.

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