True or false 1. The possibility of a business entity’s computer system being hacked and disrupting its daily business activities is an example of enterprise risk.  2. In the same situation, an individual with high subjective risk often has higher risk perception, so he will estimate a bigger chance of loss relative to an individual with low subjective risk.  3. Objective risk refers to the severity aspect of loss meanwhile subjective risk refers to the frequency aspect of loss 4. Having 10,000 exposure units as compared to 1,000,000 exposure units will enable the future loss experience can be predicted more accurately

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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True or false

1. The possibility of a business entity’s computer system being hacked and disrupting its daily business activities is an example of enterprise risk. 

2. In the same situation, an individual with high subjective risk often has higher risk perception, so he will estimate a bigger chance of loss relative to an individual with low subjective risk. 

3. Objective risk refers to the severity aspect of loss meanwhile subjective risk refers to the frequency aspect of loss

4. Having 10,000 exposure units as compared to 1,000,000 exposure units will enable the future loss experience can be predicted more accurately

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