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Module 2
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Questions in this quiz (20)
1As an application of the "number of days" lost measure of risk discussed in "scientific view of risk" consider the following 2015 statistic. Todays life expectancy is well into the 80's. What percentage of life-long smokers die before the age of 70?
- A90%
- B30%
- C50%
- Dabout the same that die in plane crashes
2According to the "scientific view of risk" most risks are relative. What does that mean?
- Aall risks should be compared to other risks to determine where they should rank
- Bsome risks should be compared to other risks to determine where they should rank
- Cany given risk should be weighed with other risks or lost benefits that can result from attempts to reduce the given risk
- Dno risk is necessarily bad there is always a worse risk
3According to "innovation risk: how to make smarter decisions" which of the following is not one of the five rules of thumb to minimizing risk?
- Aunderstand use and user
- Bdetermine which risks are being faced
- Crecognize you need a model
- Dexpect the unexpected
4"Risk management is fundamentally a question of values. In a democratic society, there is no acceptable way to make these choices without involving the citizens who will be affected by them" What does this mean?
- Amedia bias have a large impact on citizens in democratic nations
- Beveryone possibly affected by a risk should have a say in the reduction or response to a risk
- Csociety concerns regarding risk matter more than personal concerns regarding risk in a democratic society
5According to "innovation risk how to make smarter decisions", which one of the following was not one of the simultaneous factors of the recent financial crisis?
- Ahigh interest rates
- Blow interest rates
- Crising house prices
- Dan efficient mortgage refinancing market
6One of the core concepts of the reading "a scientific view of risk" is:
- Acancer is a deadly disease
- Brisk reduction has both monetary and non-monetary costs
- Csmoking causes cancer
- Ddying young is worse than dying old
7According to the reading "a scientific view of risk innumeracy is:
- Aa lack of intuitive understanding of numbers
- Ba impersonal evaluation of risk
- Ca scientific evaluation os risk
8The reading "a scientific view of risk" has a different definition of risk than we have used in class. The definition used in this reading added what component to the definition?
- Aa time element (given a period of time)
- Buncertainty
- Cadverse outcomes
- Dgovernment involvement
9According to "innovation risk: how to make smarter decisions" mathematical modeling is more precise than which of the following?
- Astatistical modeling
- Benvironmental modeling
- Chuman cognition
- Dbehavioral analysis
10What is relative risk index?
- Aa method using time elements in calculation of risk probabilities
- Ba method of comparing the odds of something affecting a specific group of people with the odds of something affecting the entire population
- Ca method to compare a specific risk versus all possible risk
11According to "innovation risk: how to make smarter decisions", which of the following is not an observable external factor measured by the Black-Scholes formula?
- Athe price of the underlying asset
- Bthe Dow Jones industrial age
- Cthe volatility of the underlying asset's price
- Dinterest rates
12Which of the following statements regarding the element of time in measuring risk is/are correct?
- Aan individuals risk varies with habits
- Btime element measurement ignores some information
- Ctime element measures a specific moment in time
13According to the "scientific view of risk", how can risk probabilities be misused?
- Aignoring the time element
- Bconsidering hypothetical "averages"
- Cnot considering the number of people engaged in the activity
14One of the public concerns associated with risk reduction in the reading "a scientific view of risk" is estimating the costs and benefits of risk reduction. For many risks, such as highway safety estimating cost and benefits of risk reduction include:
- Aputting a value on human life
- Bputting a value on household pets
- Cthe impact of pollution
- Dthe political consequences of freedom restriction
15According to "innovation risk: how to make smarter decisions", what is one of the major factors in determining the risks and benefits of innovation?
- Athe infrastructure in which the innovation is introduced
- Bthe developer of the innovation
- Cthe marketing team of the innovation
16Which of the following is not a federal agency created to help us manage and reduce risk?
- Aconsumer product safety commision
- Boccupational safety and health administration
- Cenvironmental protection agency
- Dinternal revenue service
17"Innovation risk: how to make smarter decisions" says that models can only be meaningfully evaluated as a triplet. What does this mean?
- Athere needs to be consideration in how the innovation will complete with past products, current products, and future products
- Bmodels need to take into consideration developer, producer, and user
- Cequal consideration must be given to the model, application, and user
18According to the "innovation risk: how to make smarter decisions" the infrastructure should be changed based on every new innovation
- ATrue- New Innovations constantly improve infrastructure
- BFalse- There are frequent innovations to infrastructure so the changes to the infrastructure would be constant
- CFalse- New innovations are typically short-lived and changes should only be made on innovations that have been proven successful
19Which of the following is not one of the rewards of self drive-cars?
- Aincreased driver error
- Breduced health care costs
- Creduced congestion
- Dtime saving
20What are some non-monetary costs of attempting to eliminate risks?
- Aloss of life
- Bloss of productivity
- Closs of time
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- Business Analyst Module 2 Quiz on Module 2, created by Ashley Shields on 27/05/2021.
- Author
- Ashley Shields
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- English
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