A statistical model. Derived by calculating the number of times an event occurs to the number of possible times it could occur, and expressing that results as a ratio. Used to propose the likelihood of an event happening, supported by market data. Known also as posterior probability.
Link to This DefinitionDid you find this definition of EMPIRICAL PROBABILITY helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary