The severity of loss involves estimating
A) the likelihood that loss will occur and applying it to the value of the loss.
B) each possible loss scenario and its respective probability and taking the weighted average of the possible scenarios.
C) the worst-case value of the loss.
D) the probability of the loss and applying that to the replacement value of the loss.
Correct Answer:
Verified
Q6: Frequency of loss is the
A) dollar amount
Q7: If a loss occurs, the dollar value
Q8: Insurance is the risk management method usually
Q9: Which is not an appropriate risk management
Q10: Liability risk is the risk of being
Q12: To determine the expected loss, multiply the
A)
Q13: It is impossible to avoid exposure to
Q14: Wearing a helmet when riding a bike
Q15: Purchasing insurance is a common
A) loss control
Q16: If you choose not to buy collision
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