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

State the types of international risk, International Risk: International r...

International Risk: International risk can include exchange rate risk and country risk. (i) Exchange Rate Risk: All investors who invest internationally in today's increasing

coon position is quite substantial part, A former alumna of the University...

A former alumna of the University, who originated Racoon.com ((ticker: COON1), recently passed away. In her Will, she named X-University as the beneficiary of her assets, which was

New student, what are the risk in management when you don''t have a fix pla...

what are the risk in management when you don''t have a fix plan of what you want o accomplish?

Historical simulation approach, 1) What difference does it make to the Var ...

1) What difference does it make to the Var calculated in Example if the exponentially weighted moving average model is used to assign weights to scenarios as described in Section 1

Explain the term environmental management, Question: a) (i) Define and ...

Question: a) (i) Define and explain the term environmental management'. (ii) State three principles of sustainable development in relation to environmental sustainability.

Option Pricing, #question.Price a European call and put option using expli...

#question.Price a European call and put option using explicit, implicit and cranck nicholson methods in Matlab or R.

Request for your service.., I am a university student, and for a project as...

I am a university student, and for a project assignment to be completed, my team is going to write a business plan and a compliance Manuel for stock brokers and investment advisors

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