Assume that the chance of loss is 3 percent for two different fleet of trucks. Use a numerical example to show that objective risk for both fleets can be different even though the chance of loss is identical.
What will be an ideal response?
Answer: It is possible that objective risk for both fleets can be different even though the chances of loss is identical is because the probability of something going wrong could be the same for both fleets. For example, the chances of a tire blowing out on the truck is the same for both truck fleets, the chances of an engine being blown is the same for both fleets. However, the objective risk can be different because maybe one fleet is going longer distance or is carrying more weight than the other fleet so the risk can be greater for one fleet over the other.
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