Use the following graph of the cost/benefit model for risk analysis to answer the next five questions.

-What does (1) represent?
A) Total cost
B) Loss area
C) Cost of controls
D) Level of assurance
E) Optimal point of reasonable assurance A

Question

Use the following graph of the cost/benefit model for risk analysis to answer the next five questions.
 
-What does (1) represent?
A) Total cost 
B) Loss area 
C) Cost of controls 
D) Level of assurance 
E) Optimal point of reasonable assurance A

Quizplus · Accepted Answer

(1) represents the Total cost.

Answer: C 
 The optimal point of reasonable assurance (E) is where the cost of controls (C) intersect the potential loss (B). Therefore, choosing a point on the curve from (C) to (E) is the best choice.

Answer: B 
 All points below the curve represents the area of potential loss (B).

Answer: D 
 The level of assurance (D) increases as we move from left to right on the graph.

Answer: E 
 The optimal point of reasonable assurance is the point where the cost of controls (C) intersect the potential loss (B).

Use the Following Graph of the Cost/benefit Model for Risk