Risk Is

question 83

Multiple Choice

Risk is

• A)different than uncertainty in that the probability of an uncertain event can be estimated whereas the probability of a risky event cannot be.
• B)the source of all economic rent.
• C)considered a major factor in the theory of profit that emphasizes the entrepreneur as innovator.
• D)equal to the probability that an event will occur divided by the probability that the event will not occur.
• E)different than uncertainty in that the probability of a risky event can be estimated whereas the probability of an uncertain event cannot be.

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Definitions:

Mean

The average value of a set of numbers, calculated by dividing the sum of all the numbers by the count of numbers.

Normally Distributed

A statistical distribution that is uniform around its mean, highlighting that data points near the mean are more prevalent than ones at a greater distance.

Standard Deviation

A metric that assesses the spread or diversity among a collection of figures, indicating the degree to which each figure differs from the mean value.

Mean

The arithmetic average of a set of numbers, calculated by dividing the sum of all values by the total number of values.