Which of the following statements about convolution is not correct? A) Regardless of the number of possible outcomes, risk managers still perform convolution calculations by hand. B) Convolution uses joint probabilities to estimate the combined effects of frequency and severity. C) The outcome of the calculation using convolution will be expressed in dollars. D) The total probability of all loss combinations have to add up to 1.

Question

Quizplus · Accepted Answer

Risk managers typically use software to perform convolution calculations as they can involve a large number of possible outcomes and can be time-consuming to perform by hand.

Which of the Following Statements About Convolution Is Not correct