How Is Expected Loss Calculated When Performing Risk Assessment

question 79

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

---

Definitions:

Marginal Cost

The rise in overall manufacturing expenses resulting from the creation of an extra unit.

Quantity of Output

The amount of goods or services produced by a company, sector, or economy within a specific period.

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the average cost per unit of output.

Total Cost

The complete cost of production, including both fixed and variable costs, incurred by a firm in producing a specific amount of output.