​What Might Happen If Test Results Are Not Communicated Effectively

question 6

Short Answer

​What might happen if test results are not communicated effectively or clients misperceive them?

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Definitions:

Moral Hazard

A situation where one party engages in risky behavior knowing that it is protected against the consequences, often due to asymmetric information.

Recklessly

Acting with a lack of concern for the risk or negative consequences of one's actions.

Airbags

Safety devices in vehicles designed to inflate rapidly in the event of a collision to prevent or reduce injury to passengers by limiting direct impact.

Asymmetric Information

A situation in which one party in a transaction has more or superior information compared to another, leading to potential advantages or disadvantages in the transaction.