Which of the following statements regarding the use of retention is (are) true?
I. Retention is best used for loss exposures that have a low frequency and a high severity.
II. A financially strong firm can have a higher retention level than a firm whose financial position is weak.
A) I only
B) II only
C) both I and II
D) neither I nor II
Answer: B
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Which of the following statements about the movie industry is not true?
A) Over 300 million Americans were expected to watch movies online in 2015. B) Online movie distribution is not dominated by a single distributor. C) Of the digital formats, the most revenue is generated by subscription streaming. D) DVD sales make up the largest share of movie revenues.
New information obtained through research or experimentation that enables an updating or revision of the state-of-nature probabilities is known as
a. joint probability. b. sample information. c. conditional probability. d. expected utility.