Which of the following statements about the average loss severity and average loss frequency is not correct? A) The average loss severity represents the average size of losses that might occur. B) The average loss frequency represents the average number of losses that might occur. C) Both the average loss severity and the average loss frequency are outside the control of the risk manager. D) The average loss can be estimated by multiplying the average loss severity with the average loss frequency.

Question

Quizplus · Accepted Answer

The average loss severity and the average loss frequency can be influenced by the risk manager through various risk management techniques such as loss control and loss financing.

Which of the Following Statements About the Average Loss Severity