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Classes of breach-probability functions

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Reference no: EM131406495

The Gordon-Loeb model considers two classes of breach-probability functions, including:

SII(c,v) = vac+1

In 3-5 sentences, discuss what happens to SII when v = 1. In particular, state what impact changes to the security investment level c and the parameter a have on the probability of breach. Briefly argue whether or not this is realistic.

Reference no: EM131406495

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