Objective Risk Is Defined as

question 38

Multiple Choice

Objective risk is defined as

• A)the probability of loss.
• B)the relative variation of actual loss from expected loss.
• C)uncertainty based on a person's mental condition or state of mind.
• D)the cause of loss.

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Definitions:

Multiplication Rule

A principle in probability that determines the likelihood of two independent events occurring together by multiplying their individual probabilities.

Probability

The measure of the likelihood that an event will occur.

Posterior Probability

The revised probability of an event occurring after taking into consideration new information.

Prior Probability

The probability of an event before new data or information is taken into account.