In a meeting with the board of directors, the risk manager said, "Each of the product liability claims against our firm last year cost us an average of $125,000 and a total of $375,000." He is referring to the:

Question

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The severity of losses refers to the average cost per claim, which in this case is $125,000. The total cost of $375,000 also relates to the severity of the claims.

In a Meeting with the Board of Directors, the Risk