Which statement is (are)true concerning catastrophe models?
I.Businesses other than insurance companies use catastrophe models.
II.Catastrophe models are able to precisely predict disaster occurrences and loss values.
A)I only
B)II only
C)both I and II
D)neither I nor II

Question

Quizplus · Accepted Answer

Catastrophe models are used not only by insurance companies, but also by businesses in other industries such as finance and real estate. However, catastrophe models are not able to precisely predict disaster occurrences and loss values, as they are based on historical data and probabilities, and cannot take into account all unforeseen events or human actions.

Which Statement Is (Are)true Concerning Catastrophe Models