Inaccuracies in Our Abilities to Create a Correct Distribution Arise

question 19

Multiple Choice

Inaccuracies in our abilities to create a correct distribution arise from:

• A)the nondiversifiable nature of risks.
• B)our risk averse nature.
• C)our inability to predict future outcomes accurately.
• D)our inability to distinguish between hazards and perils.
• E)the inability of insurers to insure all risks.

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Definitions:

Communication Barriers

Obstacles that impede the flow or understanding of information between communicators.

Poor Choice

A decision or selection made that is considered suboptimal or bad in hindsight.

Defensiveness

The protective reaction or behavior individuals exhibit in response to perceived threats or criticism.

Protect Themselves

Actions or measures taken by individuals or entities to safeguard against harm or danger.