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

Roles and responsibilities for risk management, Determine the roles and res...

Determine the roles and responsibilities for risk management at senior management level • The role and contents of the risk management strategy, including risk profile, risk app

Define the meaning of risk, Define the meaning of Risk  Risk can be de...

Define the meaning of Risk  Risk can be described as the probability that expected return from security won't materialize. Every investment involves uncertainties which make f

Hedging, Suppose a farmer is expecting that her crop of grapefruit will be ...

Suppose a farmer is expecting that her crop of grapefruit will be ready for harvest and sale as 150,000 pounds of grapefruit juice in 3 months time. She would like to use futures

Discuss the application of the actuarial control cycle, Question 1: (i)...

Question 1: (i) Define the following by giving an example: (a) Systemic risk (b) Diversifiable risk (ii) List and describe briefly the different types of ri

Define the meaning of return, Define the meaning of Return Return is th...

Define the meaning of Return Return is the amount or rate of produce, profits, proceeds which accrues to an economic agent from an undertaking or investment. It's a reward for

Leverage, evaluate the importance of leverage in financial management of a...

evaluate the importance of leverage in financial management of a small company

Risk assessment exercise, Question : Safety World Ltd is a new company...

Question : Safety World Ltd is a new company that employs 110 people and provides contracting carpentry services to several organisations throughout the country. Some employe

Unsystematic risk, a. What is unsystematic risk? How is it different from s...

a. What is unsystematic risk? How is it different from systematic risk? Describe the sources of unsystematic risk. What will the required rate of return be when the level of system

Explain service recovery efforts, Question 1: Service quality focuses o...

Question 1: Service quality focuses on satisfying customers' needs in the moments of truth during service encounters where the customers form perceptions of the service deliver

Techniques of risk management, identify risks faced by a banking institutio...

identify risks faced by a banking institution and ways of preventing them

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