Q1. Company A owns 100 buildings and averages 2 fires per year.
Company B own 1000 buildings and averages 30 fires per year. Company
A never experiences more than 3 fires a year, although in some years there
are none. In some years Company B has as many as 36 fires but never
has fewer than 24. Who is faced with the greater objective risk? Who has
greater chance of loss? Explain.
Answers
Answered by
0
Answer:
I think so company B has greater risk as they have more buildings and they have greater amount of fires
Answered by
0
Answer:
Company B
Explanation:
Objective risk is a comparison of the difference in actual loss versus expected loss.
Now in company A, the assets are less and the incidents also less, additionally the variation in expected loss and actual loss in not so much.
Whereas in company B, it owns 1000 buildings and the actual loss is higher in B, and also the variations in loss is also greater.
Therfore company B has greater objective risk and also greater chance of loss
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