The Law of Large Numbers Holds That

question 19

Multiple Choice

The law of large numbers holds that:

• A)risk increases as the number of exposures increases.
• B)risk is independent of the number of exposures.
• C)risk decreases as the number of exposures increases.
• D)the severity of risk increases as the number of exposures increases.
• E)the frequency of risk increases as the number of exposures decreases.

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Definitions:

Deontological Theory

A moral philosophy where the morality of an action is based on its adherence to rules or duties, rather than the consequences of the action.

Utilitarian Theory

A normative ethical theory that suggests that the best action is the one that maximizes utility, often defined as maximizing happiness and reducing suffering.

Deontological Theory

An ethical framework that judges the morality of an action based on its adherence to a set of rules, rather than the consequences of the action.

Profit Maximization Theory

An economic principle suggesting that the goal of a business is to increase net income by managing revenue and costs.