A priori probability - Study guides, Class notes & Summaries

authority, common sense, intuition, rationalism, empiricism (best), personal experience - ways of knowing when someone influential says so - authority what everyone knows, backed by personal experience - common sense "feeling of knowing" something but not quite sure where the knowledge came from - intuition a priori (before results) method; knowledge derived from reasoning or logic - rationalism knowledge from experience or observation; relies on data (same results over and over again) -...

RMIN 4000 UGA Test 1. Chapters 1-3 Exam Questions and Answers 2024 1) Traditionally, risk has been defined as A) any situation in which the probability of loss is one. B) any situation in which the probability of loss is zero. C) uncertainty concerning the occurrence of loss. D) the probability of a loss occurring. -Answer-C 2) Objective risk is defined as A) the probability of loss. B) the relative variation of actual loss from expected loss. C) uncertainty based on a person's mental...

Test Bank for Principles of Risk Management and Insurance 13th Edition by Rejda 1) Traditionally, risk has been defined as A) any situation in which the probability of loss is one. B) any situation in which the probability of loss is zero. C) uncertainty concerning the occurrence of loss. D) the probability of a loss occurring. Answer: C Question Status: Previous Edition 2) Objective risk is defined as A) the probability of loss. B) the relative variation of actual loss f...

types of risk - ANSWER--pure risk -speculative risk -diversifiable risk -nondiversifiable risk -enterprise risk -systemic risk risk - ANSWER-uncertainty concerning the occurrence of a loss uncertainty - ANSWER-probabilities cannot be estimated loss exposure - ANSWER-any situation or circumstance in which a loss is possible, regardless of whether a loss actually occurs example: earthquake or flood causing damage to a manufacturing plant objective risk (degree of risk) - ANSWER-...

RMIN 4000 uga test 1 latest 2024 actual questions and answers with complete solution types of risk -pure risk -speculative risk -diversifiable risk -nondiversifiable risk -enterprise risk -systemic risk risk uncertainty concerning the occurrence of a loss uncertainty probabilities cannot be estimated loss exposure any situation or circumstance in which a loss is possible, regardless of whether a loss actually occurs example: earthquake or flood causing damage to a manufacturing...

A priori probability Correct Answer A probability based on logical analysis rather than on observation or personal judgment. Abnormal profit Correct Answer Equal to accounting profit less the implicit opportunity costs not included in total accounting costs; the difference between total revenue (TR) and total cost (TC). Absolute advantage Correct Answer A country's ability to produce a good or service at a lower absolute cost than its trading partner. Absolute dispersion Correct Answer...

What are the 4 types of measurement scales? - 1. Nominal Scales 2. Ordinal Scales (Assigned to a category) 3. Interval Scales (Relative ranking) 4. Ratio Scales (Equal differences between scale values) NOIR When do we use geometric and arithmetic means to analyze investment returns? - Arithmetic Mean: To estimate next year's return Geometric Mean: Measure of past performance What are the 3 different types of probabilities? - 1. Empirical Probability (Past data) 2. Priori Probabili...

types of risk - correct answer -pure risk -speculative risk -diversifiable risk -nondiversifiable risk -enterprise risk -systemic risk risk - correct answer uncertainty concerning the occurrence of a loss uncertainty - correct answer probabilities cannot be estimated loss exposure - correct answer any situation or circumstance in which a loss is possible, regardless of whether a loss actually occurs example: earthquake or flood causing damage to a manufacturing plant objective...

Objective or degree risk - defined as relative variation of actual loss from expected loss. law of large numbers - number of exposure units increase, the close the actual loss experience will approach the expected loss experience. permits insurer to estimate future losses with some accuracy. Subjective risk - uncertainty based on a person's mental condition or state of mind. Chance of loss - defined as probability that event will occur. Objective probability - long run relative frequency ...

types of risk - ANSWER--pure risk -speculative risk -diversifiable risk -nondiversifiable risk -enterprise risk -systemic risk risk - ANSWER-uncertainty concerning the occurrence of a loss uncertainty - ANSWER-probabilities cannot be estimated loss exposure - ANSWER-any situation or circumstance in which a loss is possible, regardless of whether a loss actually occurs example: earthquake or flood causing damage to a manufacturing plant objective risk (degree of risk) - ANSWER-...