Author Question: An insurance company estimates its objective risk for 10,000 exposures to be 10 percent. Assuming ... (Read 217 times)

burchfield96 · **on:** Jul 11, 2018

An insurance company estimates its objective risk for 10,000 exposures to be 10 percent. Assuming the probability of loss remains the same, what would happen to the objective risk if the number of exposures were to increase to 1 million?

A) It would decrease to 1 percent.
B) It would decrease to 5 percent.
C) It would remain the same.
D) It would increase to 20 percent.

Question 2

Uncertainty based on a person's mental condition or state of mind is known as

A) objective risk.
B) subjective risk.
C) objective probability.
D) subjective probability.