Examlex
Which of the following is a characteristic of effective performance appraisal measures?
Probability
A measure of the likelihood that a certain event will occur, often expressed as a number between 0 and 1.
Risk-averse
The tendency of individuals to prefer certainty over uncertainty, valuing predictable outcomes over those that are uncertain.
Auto Insurance
A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident, covering liabilities such as injury and property damage.
Expected Utility
The anticipated satisfaction or benefit received from an outcome, weighted by the probability of different outcomes occurring.
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