To protect his poultry from meteorites,the gentleman farmer made hard hats for each bird and installed a meteor detection system that opened umbrellas throughout the yard if a meteor were detected.The safety of his flock thus assured,the farmer was surprised when he read his latest issue of Risk Management Magazine and discovered that this event was:
A)high in consequence and high in probability.
B)low in consequence and low in probability.
C)low in probability and high in consequence.
D)high in probability and low in consequence.

Question

Quizplus · Accepted Answer

While the likelihood of a meteorite striking the farm is relatively low, the potential consequences to the farmer's flock are significant. Therefore, it falls into the category of low probability but high consequence event.

To Protect His Poultry from Meteorites,the Gentleman Farmer Made Hard