Loss frequency is defined as the
A)probable size of the losses that may occur during some period.
B)probable number of losses that may occur during some period.
C)probability that any particular piece of property may be totally destroyed.
D)probability that a liability judgment may exceed a firm's net worth.

Question

Quizplus · Accepted Answer

Loss frequency refers to the probable number of losses that may occur during some period. Option A refers to probable size of losses and option C refers to probability of total destruction of property, which are not related to loss frequency. Option D refers to potential impact of a loss and not the frequency of losses.

Loss Frequency Is Defined as the