MATH1280 MIDTERM Exam | Verified Exam Questions and Answers | Latest Updated Study Material 2026

MATH1280 MIDTERM Exam | Verified Exam Questions and Answers |
Latest Updated Study Material 2026

Question:

Risk
Answer:

An uncertainty in regards to the occurrence of a loss

Question:

Loss Exposure
Answer:

A situation where a loss is possible, regardless of
whether a loss occurs

Question:

Objective Risk
Answer:

The relative variation (measurable difference) of
actual loss from expected loss. A way to quantify risk based on real data

Question:

Subjective Risk
Answer:

uncertainty based on an individual's mental
condition or state of mind. Varies from person to person on what can be viewed as a risk.

Question:

Chance of loss
Answer:

the probability that an event will occur

Question:

Peril
Answer:

the cause of loss

, Question:

Hazard
Answer:

something that increases the chances of a loss occurring

Question:

4 types of hazards
Answer:

Physical, Moral, Attitudinal,Legal

Question:

Physical hazard
Answer:

a physical condition that increases the frequency
or severity of loss

Question:

Moral hazard
Answer:

dishonesty or character defects in a person that
increase the chance of loss

Question:

Attitudinal Hazard
Answer:

carelessness or indifference to a loss, which
increases the frequency or severity of a loss

Question:

Legal Hazard
Answer:

characteristics of the legal system or regulatory
environment that increase the frequency or severity of losses