According to the Failure Mode and Effects Analysis (FMEA), Impact

question 16

Multiple Choice

According to the Failure Mode and Effects Analysis (FMEA) , Impact × Probability × Detection = __________.

• A) risk severity
• B) risk assessment
• C) risk value
• D) risk mitigation
• E) risk difficulty

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Definitions:

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods.

Marginal Product

The increase in output that results from employing one more unit of a factor of production.

Income Effect

How an individual's or economic income shift influences the demand for goods or services.

Substitution Effect

The substitution effect describes the change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another.