How Is Expected Loss Calculated When Performing Risk Assessment

question 33

Multiple Choice

How is expected loss calculated when performing risk assessment?

• A)Impact times expected loss.
• B)Impact times likelihood.
• C)Inherent risk times likelihood.
• D)Residual risk times likelihood.

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Definitions:

Vertical Axis

In graphing, the y-axis, which typically represents the dependent variable or the quantity being measured.

Utility Function

A mathematical representation that shows the relationship between an individual's consumption bundle and the level of satisfaction or utility derived from it.

Indifference Curves

Indifference curves are graphical representations used in microeconomics to demonstrate a consumer's preferences for various combinations of two goods, keeping satisfaction constant.

Horizontal Axis

A reference line on a graph or chart running left to right, typically used to represent the independent variable or basis of comparison.