Podcast
Questions and Answers
What does a 70% probability of loss at a supermarket signify?
What does a 70% probability of loss at a supermarket signify?
- No risk involved
- High level of risk
- Low level of risk (correct)
- Certainty of loss
How does uncertainty differ from risk?
How does uncertainty differ from risk?
- Uncertainty can be expressed numerically, risk cannot
- Risk is about doubt, uncertainty is about probability
- Uncertainty is subjective, risk is objective (correct)
- Uncertainty is definite, risk is indefinite
If one person has a 90% chance to lose and another has a 10% chance to lose, both losing results in them losing:
If one person has a 90% chance to lose and another has a 10% chance to lose, both losing results in them losing:
- $1,000,000 and $100,000 respectively
- $900,000 and $100,000 respectively
- $1,000,000 each
- $500,000 each (correct)
Which characteristic makes risk different from uncertainty?
Which characteristic makes risk different from uncertainty?
How would you describe the relationship between the amount of loss and the probability of an event occurring?
How would you describe the relationship between the amount of loss and the probability of an event occurring?
What is the formula for calculating objective risk?
What is the formula for calculating objective risk?
How does the text define risk in terms of deviations between actual and expected outcomes?
How does the text define risk in terms of deviations between actual and expected outcomes?
Based on the text, what happens to risk when the variation of outcomes decreases?
Based on the text, what happens to risk when the variation of outcomes decreases?
What is a characteristic of risk, according to the text?
What is a characteristic of risk, according to the text?
What does the text suggest about uncertainty being different for individuals?
What does the text suggest about uncertainty being different for individuals?
Flashcards are hidden until you start studying
