ENGR 482 Test 2 Guide With
Complete Solution
Which of the following are important distinctions for risk analysis? Choose all
that apply.
a) risk-benefit and precautionary principles
b) future and past risk
c) subjective and objective risk
d) personal and impersonal risk - ANSWER a) risk-benefit and precautionary
principles
and
c) subjective and objective risk
Which of the following generated widespread concern about risk of
technology in the 1970s and 80s?
a) nuclear power
b) commercial air travel
c) climate change
d) the dawn of the internet - ANSWER a) nuclear power
When analyzing risk using the basic notion that it is better to be safe than
sorry, engineers are employing the _____. - ANSWER precautionary principle
,Subjective risk depends upon what one perceives about a technology or
situation.
True/False - ANSWER True
The risk-benefit principle uses...
a) historical data to compare the risk between similar situations.
b) the perception of consumers to evaluate the risk of a given situation or
technology.
c) the notion that it is better to be safe than sorry.
d) quantitative information for weighing the benefits of a risk against its
costs. - ANSWER d) quantitative information for weighing the benefits of a
risk against its costs.
John thinks that there is a 50% chance of injury if he rides the ferris wheel.
The actual risk of the injury on the ride is much lower, however. What can be
said of John's thoughts regarding this situation?
a) The objective risk of riding the ferris wheel is greater than the risk that
John perceives.
b) His sense of subjective risk is greater than the objective risk involved.
c) It is impossible to answer this question based on the information provided.
d) The subjective risk is the same as the objective risk. - ANSWER b) His sense
of subjective risk is greater than the objective risk involved.
"The exact risk that a new pesticide X will have on people or the environment
is uncertain. Rather than quantify the known risks, we are better off to not
allow it to enter the market until the risks are more fully understood." This
,statement best illustrates...
a) the risk-benefit principle
b) objective risk
c) subjective risk
d) the precautionary principle - ANSWER d) the precautionary principle
The lottery experiment conducted by economist Maurice Allais indicates
that...
a) human beings always choose the option with the most potential benefit.
b) the precautionary principle is incompatible with risk analysis.
c) the principle of maximizing expected value sometimes calls for individuals
to make counter-intuitive choices.
d) the risk-benefit and precautionary principles often come to the same
conclusion about a certain risk. - ANSWER c) the principle of maximizing
expected value sometimes calls for individuals to make counter-intuitive
choices.
Which of the following are common objections made against risk-benefit
analysis? Choose all that apply.
a) it seems morally problematic to assign monetary value to the occurrence
of a preventable death.
b) risk-benefit analysis is often performed by individuals who are biased and
stand to gain from certain results.
c) risk-benefit analysis favors caution over innovation and hinders the
, implementation of new technologies.
d) the numbers used in such quantitative analysis can be very uncertain. -
ANSWER a) it seems morally problematic to assign monetary value to the
occurrence of a preventable death.
and...
d) the numbers used in such quantitative analysis can be very uncertain.
Which of these is NOT a common criticism of the Risk-Benefit Principle?
a) The numbers used in a risk-benefit analysis are very often uncertain.
b) The Risk-Benefit Principle does not adequately address reasonable
intuitions about risk aversion.
c) The Risk-Benefit Principle prevents progress because the calculations
involved make it impossible to introduce novel designs.
d) The Risk-Benefit Principle attempts to assign values to things that cannot
be assessed in monetary terms. - ANSWER c) The Risk-Benefit Principle
prevents progress because the calculations involved make it impossible to
introduce novel designs.
Although a human life has no precise monetary value, even a precautionary
analysis would consider it irrational to spend enormous sums of money
preventing a statistical death.
True/False - ANSWER True
Someone who subscribes to the precautionary principle believes that safety
and the avoidance of risk often outweigh the potential benefits that taking a
risk may offer.
Complete Solution
Which of the following are important distinctions for risk analysis? Choose all
that apply.
a) risk-benefit and precautionary principles
b) future and past risk
c) subjective and objective risk
d) personal and impersonal risk - ANSWER a) risk-benefit and precautionary
principles
and
c) subjective and objective risk
Which of the following generated widespread concern about risk of
technology in the 1970s and 80s?
a) nuclear power
b) commercial air travel
c) climate change
d) the dawn of the internet - ANSWER a) nuclear power
When analyzing risk using the basic notion that it is better to be safe than
sorry, engineers are employing the _____. - ANSWER precautionary principle
,Subjective risk depends upon what one perceives about a technology or
situation.
True/False - ANSWER True
The risk-benefit principle uses...
a) historical data to compare the risk between similar situations.
b) the perception of consumers to evaluate the risk of a given situation or
technology.
c) the notion that it is better to be safe than sorry.
d) quantitative information for weighing the benefits of a risk against its
costs. - ANSWER d) quantitative information for weighing the benefits of a
risk against its costs.
John thinks that there is a 50% chance of injury if he rides the ferris wheel.
The actual risk of the injury on the ride is much lower, however. What can be
said of John's thoughts regarding this situation?
a) The objective risk of riding the ferris wheel is greater than the risk that
John perceives.
b) His sense of subjective risk is greater than the objective risk involved.
c) It is impossible to answer this question based on the information provided.
d) The subjective risk is the same as the objective risk. - ANSWER b) His sense
of subjective risk is greater than the objective risk involved.
"The exact risk that a new pesticide X will have on people or the environment
is uncertain. Rather than quantify the known risks, we are better off to not
allow it to enter the market until the risks are more fully understood." This
,statement best illustrates...
a) the risk-benefit principle
b) objective risk
c) subjective risk
d) the precautionary principle - ANSWER d) the precautionary principle
The lottery experiment conducted by economist Maurice Allais indicates
that...
a) human beings always choose the option with the most potential benefit.
b) the precautionary principle is incompatible with risk analysis.
c) the principle of maximizing expected value sometimes calls for individuals
to make counter-intuitive choices.
d) the risk-benefit and precautionary principles often come to the same
conclusion about a certain risk. - ANSWER c) the principle of maximizing
expected value sometimes calls for individuals to make counter-intuitive
choices.
Which of the following are common objections made against risk-benefit
analysis? Choose all that apply.
a) it seems morally problematic to assign monetary value to the occurrence
of a preventable death.
b) risk-benefit analysis is often performed by individuals who are biased and
stand to gain from certain results.
c) risk-benefit analysis favors caution over innovation and hinders the
, implementation of new technologies.
d) the numbers used in such quantitative analysis can be very uncertain. -
ANSWER a) it seems morally problematic to assign monetary value to the
occurrence of a preventable death.
and...
d) the numbers used in such quantitative analysis can be very uncertain.
Which of these is NOT a common criticism of the Risk-Benefit Principle?
a) The numbers used in a risk-benefit analysis are very often uncertain.
b) The Risk-Benefit Principle does not adequately address reasonable
intuitions about risk aversion.
c) The Risk-Benefit Principle prevents progress because the calculations
involved make it impossible to introduce novel designs.
d) The Risk-Benefit Principle attempts to assign values to things that cannot
be assessed in monetary terms. - ANSWER c) The Risk-Benefit Principle
prevents progress because the calculations involved make it impossible to
introduce novel designs.
Although a human life has no precise monetary value, even a precautionary
analysis would consider it irrational to spend enormous sums of money
preventing a statistical death.
True/False - ANSWER True
Someone who subscribes to the precautionary principle believes that safety
and the avoidance of risk often outweigh the potential benefits that taking a
risk may offer.
