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Chapter One Introduction - Coggle Diagram
Chapter One Introduction
. Risk Defined
General uncertainty, doubt,
an insured object, or chance of loss
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If only one outcome is possible, the variation and
hence the risk is 0.
If many outcomes are possible, the risk is not 0
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Risk versus Probability
Probability refers to
the long-run chance of occurrence, or relative frequency of some event
Risk as differentiated from probability, is a concept in relative variation.
Risk versus Uncertainty
Uncertainty is the doubt a person has concerning his or her ability to predict which of the
many possible outcomes will occur.
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