When the Size of the Potential Loss Is Small, Most

question 10

Multiple Choice

When the size of the potential loss is small, most people will

• A)Insure because insurance costs less than the expected loss
• B)Self-insure because they can afford it and the expected loss < the insurance premium
• C)Self-insure because the expected loss can not be calculated
• D)Self-insure because insurance companies do not like to insure for small losses

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