Save
Busy. Please wait.
or

show password
Forgot Password?

Don't have an account?  Sign up 
or

Username is available taken
show password

why


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
We do not share your email address with others. It is only used to allow you to reset your password. For details read our Privacy Policy and Terms of Service.


Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't know (0)
Remaining cards (0)
Know (0)
0:00
share
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Risk Exam 3

Topic 7

QuestionAnswer
Topic 7 - Decision Making Under Uncertainty *Step 4 in the Risk Management Process *Selection Among Risk Alternatives
Loss Matrix Indicates the possible $ values associated with each combination of: (a) risk mgmt. alternatives (b) future states of world
Two possible future states of the world... (a) loss (b) no loss
Possible Risk Management Options 1. Retention 2. Retention + Safety Measures 3. Full Insurance
Retention + Safety Measures -Loss Prevention -Decrease Frequency -Cost of using the Safety Measures
Income Tax Implications of "Expenses" Tax Deductible 1. Insurance Premiums 2. Cost of Safety Programs 3. Cost of Uninsured Losses
Firm: Revenue - $2,000 Expenses - $400 (Purchased Insurance) Tax Rate, Taxable Income, Tax Obligation, After-Tax Cost of Ins., After-Tax Cost of a Tax Deductible Expenditure (Look at notes)
Probability After tax expected losses for each option: (Look at notes)
If Decision Rule Choose Alternative That Minimizes Expected Cost
Each Decision or alternative actually has two types of "costs" 1. Monetary cost - expected cost 2. Non-monetary cost - "cost of uncertainty" - "worry value"
Worry value -Cost associted with decision making -Cost of anxiety/Uncertainty concerning a decision -Unique to a decision maker
Alternatives Offer a key decision maker a choice between retention w/ expected loss OR buy full insurance for an actuarially fair premium
Created by: 503413678
 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!

"Know" box contains:
Time elapsed:
Retries:
restart all cards