Risks Can Be Quantified by Multiplying the Likelihood a Failure

question 76

True/False

Risks can be quantified by multiplying the likelihood a failure will occur by the severity of the failure.

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Definitions:

Total Utility

The total satisfaction or benefit obtained from consuming a given quantity of goods or services.

Marginal Utility

The added satisfaction or utility that a consumer derives from consuming an additional unit of a good or service.

Total Utility

This term refers to the total satisfaction received by consuming a certain amount of goods or services.

Milk Shakes

Although commonly a beverage, if not directly relevant to economics or provided as a specific economic term, the answer is NO.