AIDA 182 Final Exam Questions and Answer 100%

And" connecting events in rectangles C, D, and E to the event in rectangle A indicates what? - CORRECT ANSWER-Preventing the event in rectangle C, D, or E from occurring will prevent the event in rectangle A from occurring. "And" gate event probabilities include what? - CORRECT ANSWER-Multiplying the probability of each event occurring to get the probably of passing through the "and" gate. "means to limit the potential impact from a loss at a single location" is what control? CORRECT ANSWER-Separation. A company's fleet of cars is worrying the managers liquidity of the company and fuel prices having an adverse effect is which type of risk quadrant? - CORRECT ANSWERFinancial risk. A computer programmed to perform 100,000 times the probability distribution of profitability of acquiring a new company is what? - CORRECT ANSWER-Simulation analysis. A diagram that graphically and sequentially depicts the activities of a particular organization or process is what? - CORRECT ANSWER-A flowchart. A failure mode with an effect on the same level that is being analyzed produces what? CORRECT ANSWER-A local effect. A main characteristic of a key risk indicator is? - CORRECT ANSWER-They are based on quantifiable information. A property-casualty insurer has what two operations? - CORRECT ANSWER-Insurance operations and investment operations. A rate should be what? - CORRECT ANSWER-Stable (not constant over the long term), result in premiums that cover all losses and expenses and leave some left for profit and contingencies, be reflective of the risk exposure, and be responsive. Stable rates are desirable because changing rates is expensive. A strong correlation exists between umbrella policy and replacement cost policy purchases. It would be incorrect to conclude demand increases for umbrella policies create demand increases for replacement policies, why? - CORRECT ANSWERBecause correlation does not measure causality. A systemic procedure that uses the results of other analysis techniques to identify the predominant determinant