Quiz
Exam Pt. 1
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Questions in this quiz (32)
1In module 1 we discussed hazards. Changes to the law, such as the legalization of marijuana, are examples of:
- Aphysical hazard
- Bmoral hazard
- Csocietal hazard
- Dliability hazard
2In module 1 we discussed how you measure risk. When measuring risk, frequency is synonymous with:
- Aimpact
- Blikelihood
- Cseverity
- Dexpected value
- Estandard deviation
3In module 1 we discussed risk (loss) control. Airbags in a vehicle are an example of:
- ARisk (loss) prevention
- BRisk (loss) reduction
- CInvestments in information
- DRetention
- EHedging
4In module 1 we discussed risk management. Which of the following is one of the “rules of risk management”:
I.Do not ignore sunk costs
II.Don’t risk more than you can afford to lose
III.Don’t risk a lot, just to gain a little- AI
- BII
- CIII
- DI & II
- EI & III
- FII & III
- Gall
5Which of the following allows individuals to substitute a small certain payment for a larger uncertain possibility of a loss, in other words, what makes insurance possible?
- Aexpected value
- Bstandard deviation
- Claw of large numbers
- Dall
- Enone
6In module 1 we discussed risk financing. Paying anticipated losses out of normal cash flows is an example of:
- Afunded retention
- Bunfunded retention
- Ctransfer
- Dunplanned retention
- Eall
7In module 1 we discussed risk measurement. Which of the following is the best measure of risk:
- Aexpected value
- Bexpected utility
- Cstandard deviation
- Dall
- Enone
8In module 1 we discussed categories of risk. Which of the following categories of risk represent the risks that are changing through time:
- Asecondary
- Bstatic
- Cfundamental
- Dcore
- Enone
9In module 1 we discussed sources of risk. The possibility of a doctor being sued because a medical mistake leads to a patient suffering an injury, known as medical malpractice, is an example of which source of risk:
- Apersonal
- Bproperty
- Cliability
- Dstatic
- Edynamic
10Fed Ex & UPS have thousands of trucks on the road every day. Each of these trucks are:
- Aexposure
- Bperil
- Chazard
- Dadverse selection
- Emoral hazard
11In module 1 we discussed the six steps of the risk management process. The preferred approach to risk identification is:
- Aquestionnaires
- Bchecklists
- Cprocedure guides
- Dcontract analysis
- Ecombination approach
12In module 1 we discussed the six steps of the risk management process. Diversification is a method of:
- Arisk control
- Brisk financing
- Cinternal risk reduction
- Dinvestments in information
- Enone
13In module 1 we discussed the six steps of the risk management process. Insurance is an example of:
- Arisk control
- Brisk financing
- Cinternal risk reduction
- Dretention
- Ehedging
14In module 1 we defined risk. What gets added to the definition of risk when looking at it from the organizational level?
- A“...that interferes with obtaining goals”
- B“...that impacts a large portion of the population”
- C“...no change in definition”
- Dall
- Enone
15In module 1 we discussed the six steps of the risk management process. Risk (loss) Prevention is aimed at:
- Afrequency
- Bseverity
- Cboth frequency and severity
- Dretention
- Ehedging
16In module 1 we discussed the six steps of the risk management process. Which of the following is a step in the risk management process:
- Adetermine objectives
- Bidentify risks
- Creview and evaluate
- Dall
- Enone
17Which term best describes the “information problem” where one party to a transaction has more/better information about the risk than the other party?
- Aexposure
- Bperil
- Clegal hazard
- Dadverse selection
- Emoral hazard
18Olivia fails to be careful with her laptop because she purchased the insurance coverage on it. Olivia’s behavior is an example of:
- Aphysical hazard
- Bmoral hazard
- Cadverse selection
- Dgenetic predisposition
- Eteenagerism
19Avoiding risky activity is a method of:
- Arisk control
- Brisk financing
- Cinternal risk reduction
- Dretention
- Ehedging
20In module 1 we discussed the costs associated with risk. Which of the following is a burden of risk on society:
I.Fear and worry
II.Need for larger emergency funds
III.The addition of goods and services- AI
- BII
- CIII
- DI & II
- EI & III
- FII & III
- Gall
21One of the core themes of the reading “A Scientific View of Risk” is that risk reduction has the following costs:
I.Fear & Worry
II.Societal utility
III.Non-monetary- AI
- BII
- CIII
- DI & II
- EI & III
- FII & III
- Gall
22The reading “A Scientific View of Risk” added what component to the definition of risk:
- Aadverse effect
- Btime effect
- Cpossibility of death
- Dvolatility
- Evalue on human life
23According to the reading “Innovation Risk: How to Make Smarter Decisions”, innovation changes the trade-off between risk and _________.
- Acost
- Brisk relatives
- Cregulations
- Dall
- Enone
24Which of the following are examples of the risks that could be associated with self-drive cars
I.Reduced traffic fatalities
II.Computer malfunctions
III.Reduced health care costs- AI
- BII
- CIII
- DI & II
- EI & III
- FII & III
- Gall
25According to the reading “Innovation Risk: How to Make Smarter Decisions”, which of the following is one of the five rules of thumb to minimize risk:
- ARecognize that you need a model
- BUnderstand mental models
- CImprove the infrastructure
- DRemove any model limitations
- EContinue using incorrect models
26According to the reading “Innovation Risk: How to Make Smarter Decisions”, important characteristics of models include:
I.Based on mental models
II.Applications are consistent
III.Results are verifiable- AI
- BII
- CIII
- DI & II
- EI & III
- FII & III
- Gall
27According to the reading “Innovation Risk: How to Make Smarter Decisions”, all models are ____________.
- Aincomplete
- Bincorrect
- Cincongruent
- Dirreplaceable
- Eiridescent
28According to the reading “Innovation Risk: How to Make Smarter Decisions”, a major source of risk is the imbalance that can occur between innovations in products and services and the slower changes to ___________.
- Ahuman capabilities
- Binfrastructure
- Cregulation
- Dall
- Enone
29Which of the following represents the “most likely scenario” loss amount:
- Aone in one hundred year event
- Bstandard deviation
- Cprobable maximum loss
- Dmaximum possible loss
- Elaw of large losses
30Which of the following shows the amount of profit earned in each outcome by adopting a course of action:
I. Payoff Table
II. Regret Table
III. Expected Value- AI
- BII
- CIII
- DI & II
- EI & III
- FII & III
- Gall
31In module 3 we discussed decision rules (criteria). Which decision rule says “find the most likely outcome and pick an action that maximizes that profit”:
- Amaximin
- Blaplace
- Cmaximum likelihood
- Dexpectation principle
- Enone
32In Module 3 we discussed the decision-making process. Which of the following are steps of the decision-making process:
I.Determine objectives
iI.Determine the payoff function (table)
III.Review and evaluate- AI
- BII
- CIII
- DI & II
- EI & III
- FII & III
- Gall
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- Business Analyst Exam Pt. 1 Quiz on Exam Pt. 1, created by Ashley Shields on 28/05/2021.
- Author
- Ashley Shields
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- English
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