Which of the following statements about convolution is not correct?
A) Regardless of the number of possible outcomes, risk managers still perform convolution calculations by hand.
B) Convolution uses joint probabilities to estimate the combined effects of frequency and severity.
C) The outcome of the calculation using convolution will be expressed in dollars.
D) The total probability of all loss combinations have to add up to 1.
A
You might also like to view...
A cost object is anything for which management desires a separate tracking of costs, while a cost driver is the factor that causes the cost object to increase or decrease.
Answer the following statement true (T) or false (F)
The objective of customer order entry is to maintain a record of product receipt and complete payment
Indicate whether the statement is true or false.
FedEx and UPS are converting their delivery trucks with standard diesel engines to more fuel-efficient and cleaner hybrid-electric vehicles, which can cut fuel costs by half and lower fuel emissions by 90 percent. These vehicles are marked as low-emission hydraulic hybrids right on the side of the trucks. This is an example of
A. demarketing. B. green marketing. C. cause marketing. D. preemptive compliance. E. triple-top line marketing.
Which of the following would NOT be considered cash?
A) Currency B) Money market funds C) Money orders D) Checking accounts