The formula used to calculate the degree of objective risk is
A) probable variation of actual from expected losses divided by the expected loss
B) expected loss multiplied by the quantity 1 minus variance divided by expected loss
C) range of reasonable loss expectation divided by actual loss experience
D) expected losses minus probable losses divided by the range of actual losses experienced.

Question

Quizplus · Accepted Answer

The degree of objective risk is calculated as the probable variation of actual from expected losses divided by the expected loss. This formula measures the relative variation from what is expected, providing a quantifiable measure of uncertainty in outcomes.

The Formula Used to Calculate the Degree of Objective Risk