Receiving a much larger than usual gas utility bill because of an early spring cold spell is an example of what type of risk?
A) known risk
B) known-unknown risk
C) unknown-unknown risk
D) known-known
E) none of these

Question

Quizplus · Accepted Answer

A known risk is a risk that is already identified and can be quantified, while a known-unknown risk is a risk that is expected to occur but its timing and severity are uncertain. An early spring cold spell leading to a larger gas utility bill is something that could be predicted to happen at some point but the timing and severity are uncertain, making it a known-unknown risk.

Receiving a Much Larger Than Usual Gas Utility Bill Because