In Assessing a Position or an Asset,the Commonly Assumed Probability

question 21

Multiple Choice

In assessing a position or an asset,the commonly assumed probability for unlikely outcomes is ____,which means that:

• A)5%;%5 of possible outcomes should be considered as likely.
• B)25%;75% of possible outcomes should be considered as likely.
• C)5%;95% of possible outcomes should be considered as likely.
• D)25%;25% of possible outcomes should be considered as likely.

---

Definitions:

Slippery Slope Fallacy

A logical fallacy that occurs when an argument suggests that a minor first step will lead to a chain of related and undesired events.

Fallacy Of Composition

The logical error of assuming that what is true for the individual parts must also be true for the whole group.

Slippery Slope Fallacy

A logical fallacy that asserts without sufficient evidence that a relatively small first action leads inevitably to a chain of related (negative) events.

Predicted Outcome

A predicted outcome is the expected result of an experiment or model, often based on theoretical insight or previous data.