Describe the difference between risk and uncertainty, Risk Management

Assignment Help:

Problem:

(a) Describe the difference between risk and uncertainty. Give an example to illustrate your answer.

(b) Name three common measures of risks and outline their potential benefits.

(c) Describe briefly, by making use of examples, the situation under which each of the following distributions is employed:

(i) The Normal distribution
(ii) The Triangular distribution
(iii) The Poisson distribution
(iv) The Lognormal distribution
(v) The Weibull distribution
(vi) The Pareto distribution

(d) In what ways is the Hypergeometric distribution different from the Binomial distribution?

(e) Describe the following two measures of shape: skewness and kurtosis. Illustrate examples of these two measures of shape.

(f) State Bayes' Theorem.

(g) Three machines and C produce 20%, 45% and 35% respectively of a factory's wheel nuts output. 2%, 1% and 3% respectively of these machines' outputs are defective.

(i) What is the probability that any wheel nut randomly selected from the factory's stock will be defective?

(ii) What is the probability that a randomly selected wheel nut comes from machine A if it is defective?


Related Discussions:- Describe the difference between risk and uncertainty

Define value at risk as a measure of market risk, Black Rock Investors is ...

Black Rock Investors is managing the pension fund of Virgin Atlantic. Sir Richard Branson wants to assess the risk of the portfolio following the Euro crisis. During a discussion

What is systematic risk, What is Systematic Risk Variability in a secur...

What is Systematic Risk Variability in a security's total returns which is directly associated with overall  movements  in  the  general  market  or  economy  is  known as syst

Determine the optimum prices and outputs, The basic question in this case i...

The basic question in this case is whether Jetliners and Acme Airline should work together to develop a new super sized airframe or should each company seek to develop its own vers

Risk identification and assessment, This assignment asks to investigate an ...

This assignment asks to investigate an incident at work focussing on risk identification and assessment. The investigative tool that was used was downloaded from the WorkCover webs

Liquidity risk managment, how to write the literature review on liquidity r...

how to write the literature review on liquidity risk management and supervision

Discretionary access control and mandatory access control, Question: (a...

Question: (a) (i) Explain what is meant by Discretionary Access Control and Mandatory Access Control. (ii) What is the difference between the two types of access contro

Underwriting Principles, Which of the following statements about group insu...

Which of the following statements about group insurance underwriting principles is (are) true? I. If a plan is contributory, 100 percent of the eligible employees must be covered.

Execution of a risk analysis, Question: (a) What are the various option...

Question: (a) What are the various options to mitigate risks in an Information Security Management System (ISMS)? For each option specify an instance where it can be used.

Determine about the market risk, Determine about the Market Risk Var...

Determine about the Market Risk Variability in a security's returns resulting from fluctuation in aggregate market is called market risk. Market risk is sometimes used synon

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd