What does Objective Probability relate to?

Objective probability is fundamentally tied to the long-run frequency of events based on empirical observations and statistical analysis. This concept arises from repeated trials or observations, allowing for a calculation of the likelihood of an event occurring based on actual data rather than personal beliefs or subjective interpretations. This empirical basis provides a more reliable and quantifiable representation of probability, making it particularly useful in fields like insurance and risk management where decisions need to be made based on statistical evidence.

In contrast, the other options do not accurately capture the essence of objective probability. Individual beliefs pertain to subjective perceptions and may vary from person to person, lacking the reliability that objective statistics provide. The potential for loss events relates more to the risk assessment process than the calculation of probability itself. Lastly, while statistical variances in data are important for understanding distributions and any deviations from expected outcomes, they do not specifically define what objective probability encompasses.