What Is the Difference Between Uncertainty and Risk

question 72

Multiple Choice

What is the difference between uncertainty and risk?

• A)Risk deals with people, uncertainty with events.
• B)Uncertainty deals with people, risk deals with events.
• C)Risk exists when the probability of a given event cannot be estimated, whereas uncertainty exists when the probability of a given event can be estimated.
• D)Uncertainty exists when the probability of a given event cannot be estimated, whereas risk exists when the probability of a given event can be estimated.
• E)b and d

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Definitions:

Mode

The value that occurs most frequently in a given set of data.

Distribution

In statistics, a mathematical representation of the observed or possible frequencies of occurrences of a range of outcomes.

Normally Distributed

A statistical term describing data that fall into a symmetrical, bell-shaped curve where most observations cluster around the mean.

Standard Deviation

An analytical tool that assesses the level of diversity or deviation of data points from their central value.