During the Risk Evaluation Process,a High Probability That a Particular

question 58

Multiple Choice

During the risk evaluation process,a high probability that a particular loss-causing event will occur must be weighed against which of the following possibilities?

• A) that the event will definitely occur and the loss is unavoidable
• B) whether likely occurrence may be offset by a low level of associated loss
• C) whether low probability will be offset by a high level of associated loss
• D) that the event will likely never occur and should be ignored

---

Definitions:

Random Sample

A selection of individuals from a population where each individual has an equal chance of being chosen, ensuring the sample represents the population well.

Statistics Canada

Canada's national statistical agency tasked with compiling data on the country's economy, society, and environmental conditions.

Alpha

In statistics, it represents the level of significance, marking the threshold for rejecting the null hypothesis; in finance, it denotes the active return on an investment compared to a benchmark index.

Power of the Test

The power of the test refers to the probability that the test correctly rejects a false null hypothesis, effectively detecting an actual effect when it exists.