​The Key Distinction Between Risk and Uncertainty Is

question 72

Multiple Choice

​The key distinction between risk and uncertainty is

• A)​Risk cannot be quantified,priced or traded
• B)Uncertainty refers to not knowing possible outcomes or their probabilities
• C)Uncertainty is modeled by listing the possible outcomes and assigning probabilities to the outcomes
• D)​Risk has to do with not knowing the probability distribution of a random variable

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Definitions:

Little Albert

A historical experiment in psychology conducted by John B. Watson and Rosalie Rayner, demonstrating how emotional responses can be conditioned in humans.

Sight of a Rabbit

The visual detection of a rabbit, often triggering various reactions in different observers or contexts.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Different Species

Groups of living organisms that share common characteristics and genetics but are able to reproduce only among themselves.