Which of the Following Statements About Liability Losses Is True

question 49

Multiple Choice

Which of the following statements about liability losses is true?

• A)They arise from two sources: the obligation to pay legal damages, and the resulting bad publicity
• B)The obligation to pay legal damages is always more expensive than the cost of defense
• C)Defense costs can be expensive, unless the court finds that the plaintiffs claims are groundless
• D)None of the above are true

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Definitions:

Probability of Success

The likelihood of achieving a favorable outcome in a given trial or experiment.

Binomial Random Variable

A type of random variable that takes on one of two possible outcomes with certain probabilities, typically used in binomial distributions.

Final Exam Week

The last period in an academic term during which final exams are administered across various courses, typically a significant determinant of final grades.

Expected Number

The statistically predicted count or quantity that arises in a specific context, often used in probabilistic and statistical analyses.