As the number of exposure units increases the loss exposure becomes less risky, all else the same.

Name: As the number of exposure units increases the loss exposure becomes less risky, all else the same.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

As the number of exposure units increases, the risk becomes more predictable due to the law of large numbers, which reduces the relative variation of actual loss from expected loss, making the loss exposure less risky.

As the Number of Exposure Units Increases the Loss Exposure