Wrong practice attempts

Which one of the following statements is true regarding a generic model of a securitization?

The organization sells income-producing assets to an SPV in exchange for cash.

The focus of risk quadrants is different from the focus of risk classifications in general. While the classifications of risk focus on some aspect of the risk itself, the four quadrants of risk focus on

The source of risk and who has traditionally managed it.

Which one of the following statements is correct with respect to empirical probability distributions?

They provide a mutually exclusive, collectively exhaustive list of outcomes.

Which one of the following is a benefit of the conditional value at risk (CVaR) method?

It takes into account the extremely large losses that may occur.

Which one of the following is an analysis that dissects a repetitive task to determine potential hazards if each action is not performed?

Job safety analysis

Which one of the following system safety techniques is best suited to analyze repetitive human tasks performed in a sufficiently stable environment where most hazards are foreseen?

Job safety analysis

Construction contracts typically hold the

Landowner harmless for certain construction-related claims.

Which one of the following indicates the values of the target variable on a classification tree?

Leaf nodes

An organization must meet the standard of care that it owes to others in order to ensure that

Legal obligations are satisfied.

Which one of the following statements is true regarding contracting for services as a noninsurance risk control transfer?

Liability loss exposures associated with an activity are not transferred easily, especially regarding harm to third parties.

The portion of fire safety that focuses on the minimum building design, construction, operation, and maintenance requirements necessary to assure occupants of a safe exit from the burning portion of the building is

Life safety.

Which one of the following is the initiating event in an event tree analysis?

Lightning strikes a warehouse building while it is closed for the weekend

"The contractor agrees to indemnify and hold harmless the owner against claims, damages, bodily injury, or property damage arising out of the contractor's work and caused by any act of omission of the contractor, his agents, and his employees." This is an example of which one of the following forms of a hold-harmless agreement?

Limited form

A municipal water plant installed water flow sensors and water pressure sensors on the water pipes leaving the plant. The sensors make sure water is flowing properly and that there are no leaks or clogs which could produce a loss. These types of sensors are

Mechanical sensors.

The occupancy class characterized by a large number of people who gather in a space that is relatively unfamiliar to them is

Mercantile

Which one of the following analysis methods concentrates on an organization's competitive environment?

Porter's Five Forces analysis

Brendan is a new risk manager at a Shelton Manufacturing in North Carolina. Because the company has never experienced any consequences from a hurricane, the previous risk manager never really analyzed the risks associated with such an event. Brendan feels that a hurricane could trigger multiple far-reaching consequences and that the risk requires a thorough analysis. Due to Shelton Manufacturing's lack of historical data Brendan has decided to use a structured process that incorporates expert opinions into the probability estimations. Which one of the following types of risk assessment is Brendan using?

Predictive technique

Southwest Interstate Railroad (SIR) is concerned about the number derailments in recent years. It's not cost effective to use human assets to inspect tracks, bridges, and trestles. Instead, SIR has started to use drones. A drone can fly low over tracks and above/below bridges and trestles. The drones record video that is transmitted to corporate headquarters where it is simultaneously scanned for derailment hazards. In the past six months, the drones detected a track blockage caused by a rock slide and damage to tracks in a remote area cause by an earthquake. SIR dispatched work crews to make the tracks once again passable, and no derailments occurred. SIR's use of drones, video, real-term video scanning, and computer analysis illustrates which one of the following?

Preventative analytics

Which one of the following statements is true with regard to preventive analytics?

Preventive analytics uses smart products and data analytics to identify root loss causes and their implications.

Aligning risks with the organization's risk appetite defines

Tolerable Uncertainty

Hank has determined the expected number of workers compensations claims in a given year. Hank next calculates the standard deviation of potential outcomes. Calculating the standard deviation

Provides a measure of how sure Hank can be in his estimate of claims.

A predictive approach to data analytics involves

Providing a method to be used repeatedly to provide information.

Buildings constructed of reinforced concrete have been successful withstanding this disaster, but building all structures in this manner is neither practical nor economical. This statement pertains to which one of the following disasters?

Tornado

An analysis that identifies mathematical patterns in past losses and then projects these patterns into the future is

Trend analysis.

Partridge Office Supplies has a history of theft losses as follows: Historical Amount Adjusted to DateAmountYear 3 Price Levels Year 1 2/16 $500 $590 3/30 $200 $236 4/16 $600 $708 8/15 $800 $944 Year 2 1/01 $1100 $1166 3/19 $700 $742 5/19 $4000 $4240 11/22 $1500 $1590 12/05 $4400 $4664 Year 3 4/04 $2000 $2000 5/21 $1400 $1400 7/09 $3500 $3500 10/11 $3700 $3700 12/24 $5600 $5600 12/27 $6000 $6000 During the last three years, Partridge has expanded its hours of operation to remain open 24 hours a day, 7 days a week. Partridge has also begun to carry a line of computer equipment, including small portable accessories such as flash drives, USB converters, and wireless accessories. Based on Partridge's loss history, the most appropriate forecasting technique is Select one:

Trend analysis.

Statutory limitations on hold-harmless agreements vary in the

Types of noninsurance transfers to which the statutes apply.

Management of LMN Insurance Company is considering investing in the Stability-Growth Mutual Fund; however they are concerned about the volatility of the investment. The fund's manager said that on any given day, there is a 5% probability of losing more than 3% of the investment's worth. The statistic quoted by the fund manager is

Value-at-risk.

Murray Trucking is interested in evaluating which risk factors are most likely to lead to the most costly accidents. They are evaluating risk factors such as speed, weather conditions, driver experience, distance traveled, and gross vehicle weight. Which one of the following statistical measurements would be useful for the risk manager when calculating the probability of the different risk factors causing severe accidents?

Variance

Regression analysis assumes that the variable being forecast

Varies predictably with another variable.

Which one of the following is a characteristic that differentiates big data from traditional data?

Velocity

Disaster recovery plans for windstorms should reflect not only weather conditions, but also the difference in

Warning times.

A company's management team is preparing to conduct a SWOT analysis as part of its strategic management process. Which one of the following questions can the management team expect to answer as a result of the SWOT analysis?

Will this organization's current business strategies still allow it to achieve its goals, or is a change required?

Widget Manufacturing board of directors recently adopted a zero-risk tolerance for work place accidents. Initially the chief risk officer thought this was a great idea, however, he has found it very hard to implement. One reason that a zero-risk tolerance policy is hard to implement is because zero-risk

Will typically result in risk-based decisions that are too rigid and counter-productive.

One of the reasons that building occupancies affect life safety is that different occupancies have different

Features that affect safe exit from a building.

An organization practicing holistic risk management would assess the cost of raw materials and foreign exchange risk under which one of the following quadrants of risk?

Financial risk

The risk control measures used to protect people and property from the adverse effects of hostile fires are collectively called

Fire safety.

This earthquake-resistant construction relies on the resilience of steel or specially designed reinforced concrete to absorb energy, undergo considerable distortion, and return to its original shape. Which one of the following describes this type of design?

Frame action design

When an employee retires or resigns, the most significant loss to the organization is typically the

Future value that the individual would have provided to the organization.

Which one of the following types of risk analysis uses historical data to assign specific values to consequences and their probabilities to reach a numeric indication of the level of risk?

Quantitative analysis

When assessing strategic risk, which one of the following represents the amount of risk an organization is willing to take on in order to achieve an anticipated result or return?

Risk appetite

A noninsurance transfer in which the transferor transfers a loss exposure to the transferee, thereby eliminating the possibility that the transferor will suffer a loss from the transferred exposures is a noninsurance

Risk control transfer.

Information used as a basis for measuring the significance of a risk is called

Risk criteria

Modifying the contact surface or basic structure that can be affected by installing breakaway highway light poles or requiring front and side airbags in automobiles to cushion occupants' impact is a basic strategy of the

Energy transfer theory.

Which one of the following statements best describes the shareholders' equity section of the balance sheet?

shareholders' equity is negative when liabilities exceed assets.

Emerald Industries has just invested a large sum in new, highly-sophisticated computer equipment and building renovations. Emerald installed state-of-the-art smoke detection devices throughout the facility. Emerald's state-of-the-art smoke detection devices are an example of

loss reduction.

Do-It-Yourself (DIY) is a chain of building material and home repair stores located in the Southeastern part of the United States. DIY always experiences a "run" on sheets of plywood and generators whenever hurricanes occur. Customers also want fuel and bottled water when they come to DIY after hurricanes. To speed the process of getting necessary products to stores with the greatest need, DIY entered into a contract with a supplier that will ship extra products overnight to stores close to where a Category 3 or higher hurricane is expected to make landfall. DIY uses forecast data from the National Weather Service. So far, the results have been favorable. DIY's standing order to have products sent to its stores when hurricane losses are imminent is an example of a

smart contract

Vandenberg Company retains workers compensation medical expenses. The risk manager ran a regression using workers compensation medical costs as the dependent variable and company payroll (in actual dollars) as the independent variable. Results of the regression were: y = .098 x + 5.20 Next year's payroll is expected to be $3,750,000. As medical costs continue to rise at a rate higher than inflation, the risk manager would like to adjust the expected medical costs upward by 10%. Based on this information, what are the expected workers compensation medical costs for next year?

$404,256, y = .098 (3,750,000) + 5.20, y = 367,505.20; 367,505.20 × 1.10 = 404,255.72.

Pacific Fuel Company stores refined gasoline in a large underground storage tank, which is encased in a second tank, called a "double hull." Pacific Fuel's risk manager, Merrill, is concerned that fuel could leak from the tank and pollute the ground. To analyze this risk, he constructed an event tree. He believes there is a 40% probability that there will be a leak in the tank in the next five years and, if a leak occurs, he believes there is an 80% probability that the second hull will contain the leak. If the second hull does not contain the leak, he believes there is a 70% chance of severe pollution and a 30% chance of minor pollution. What is the probability of severe pollution from the tank occurring in the next five years?

.40 x .20 x .70 = 5.60%

An organization's premises and operations liability losses have a severity distribution with a mean of $10,000 and a standard deviation of $15,000. What is the coefficient of variation for this distribution?

1.5, calculated by dividing the standard deviation of $15,000 by the mean of $10,000.

Assume that the expected safe life of a heating element for a particular type of furnace is 4,000 hours with a standard deviation of 200 hours, and that the expected safe life conforms to a normal distribution. If the maintenance schedule requires that the element be replaced after 4,000 hours, which one of the following represents the chance that the heating element will become unsafe before being replaced?

50% because 50% of the normal distribution is below the 4,000 hour mean

An excess liability insurance policy that covers a claim in excess of the underlying limits only if the loss is covered by the underlying policy is called

A following-form excess policy.

Northern Consolidated is evaluating the financial risk associated with its investment portfolio. The risk manager knows that as interest rates increase, bond values decrease. This relationship is known as

A negative covariance.

Which one of the following statements about blockchain is true?

Blockchain stores a record of transactions across a network of servers.

Carla, the risk manager, was asked by senior management to deliver a presentation on cyber risk at an all employees meeting. Even though she was only allotted 30 minutes for her presentation, Carla felt that cyber risk was a very real risk for the corporation and she wanted employees to leave with some fear of it. She wanted to provide employees with as much technical information as possible, and familiarize them with all of the important jargon. Less than 20 minutes into her presentation, Carla could tell that many of the employees were not paying any attention to her presentation. Which one of the following steps in the communication process had Carla failed to consider?

Analyze your audience

The basic accounting equation on which the balance sheet is structured is

Assets = Liabilities + Net Worth

Telematics devices allow organizations to accurately identify patterns of risk and predict risk for which one of the following types of loss exposures?

Automobile

One of the four characteristics that affects an individual's susceptibility to injury or death from a building fire is

Awareness of the fire.

Which one of the following is a major benefit that blockchain technology provides to holistic risk management?

Because of their security, blockchains can eliminate the need to verify the accuracy of risk management data.

In addition to metal detectors, many airports have installed a second type of scanning technology for checked baggage and cargo. The checked bags and cargo pass through a portal with scanners programmed to detect and test for explosive trace fumes. These scanners, which detect explosives based on air samples, are an example of what type of sensor used for risk assessment and control?

Biochemical sensors

Which one of the following is described as a distributed database that serves as a collectively shared ledger?

Blockchain

Which one of the following technologies can provide the infrastructure upon which smart contracts are built and implemented?

Blockchain

A state wants to build a road through an environmentally-sensitive area. The area includes endangered flora and fauna, as well as wetlands. Build-Rite Construction expressed interest in the project, but is concerned about potential liability. Build-Rite agrees to build the road if the state assumes all responsibility for any liability arising out of the construction of the road. A state representative has signed-off on the contract, agreeing that the state will be responsible for all liability. This transfer of responsibility for fault illustrates which one of the following forms of noninsurance risk financing transfer?

Broad form

A risk manager for a grocery store wants to see if there is a correlation between the frequency of customer slip and fall accidents, and the time of day. Which one of the following is a relatively simple data analysis technique that the risk manager could use to determine this correlation?

Bubble plot

Under a large deductible plan, the amount that the insurer incurs to adjust losses

Can be inside or outside the deductible.

Tom, the regional manager at Westfork Mutual, has planned a community service day for all employees. He has asked his two assistant managers, Julian and Leah, to spread the word to other employees and encourage them to attend. Based on centrality measures of the company's email traffic, Tom is confident that Julian will spread the word to more employees more quickly through email than will Leah. Tom's confidence is based on Julian's high score in which one of the following centrality measures?

Closeness

Nancy, the general liability claims manager, is concerned about a significant rise in claim frequency in the state of New Jersey during the past 18 months. She cannot identify the cause of the increase and has asked James, a data analyst, to help. James decides to develop a model to analyze the dataset of New Jersey claims, and see if any previously unknown grouping can be identified for further analysis. Which one of the following data analysis techniques is James using?

Cluster analysis

Hold-harmless agreements are

Comprised of two parties—the indemnitor and the indemnitee.

A risk manager and safety engineer need to consider which one of the following interdependent elements when evaluating the premises condition?

Construction, occupancy, protection, and external exposures

Insurance Company monitors key indicators of underwriting effectiveness. Some indicators they monitor include: percentage of business quoted that was written, application processing time, premium volume handled by underwriters, skill level of underwriters, and benchmarking between different underwriting offices. The indicators of underwriting performance Insurance Company uses are called

Control indicators.

Which one of the following is an example of exploratory data analysis?

Correlation matrix

Jeremy purchased some long-term corporate bonds when he retired. He plans to use the periodic interest payments from the bonds to supplement his other sources of retirement income. However, some of the companies that issued the bonds that Jeremy purchased may become insolvent and unable to make periodic interest payments. This risk that Jeremy took when he invested in the corporate bonds is called

Credit risk.

Gaining a holistic perspective requires

Developing a thorough understanding of each unit's role and how it supports or depends on other units and stakeholders.

Commercial general liability insurance policies written on an occurrence basis apply to bodily injury and property damage that occurs during the policy period. This provision supports the principle that insurable loss exposures must ideally be

Definite.

Noise level, temperature extremes, and poor air quality are worksite sources of

Disabling illnesses.

Maria is a risk management professional trying to analyze workers compensation loss frequency by cause of loss. Which one of the following forms of probability distribution would be most appropriate for her to use?

Discrete

An employer requires that its employees be at least six feet tall. Which one of the following types of potential Employment Practices Liability claims is likely to result from this requirement?

Disparate impact discrimination

A female job seeker was denied employment at a local law firm as she did not fulfill a job requirement that all employees be at least six feet tall. An employment practices liability claim was filed against the law firm alleging discriminatory actions. The type of discrimination described in this instance is

Disparate impact.

A1 Architectural Design relies on its historical files and blueprints. The partners of the firm are discussing risk control measures that can be implemented to provide protection against property-related losses. Which one of the following would likely offer the best protection for this exposure?

Duplication

A financial analyst wants to evaluate the effect that a predicted increase in the cost of steel will have on the net income of East Side Manufacturing. Which one of the following measurement techniques should the analyst use?

Earnings at risk

Which one of the following statements is true if earnings at risk are $200,000 with 90% confidence?

Earnings at risk are projected to be less than $200,000 10% of the time.

Estimates whose accuracy depends on the size and representative nature of the samples being studied are

Empirical probabilities.

Martha Hier, the Human Resource manager for Quick E foods is struggling with the loss of employees at its chain of restaurants. Of particular concern is the recent rash of discrimination cases brought against the company with former employees claiming mistreatment based on gender, age, or race. Hier went to the company's risk manager concerned not only with the immediate and short-term loss of productivity but the longer term potential human resource loss exposure resulting from

Employment liability.

The physical stress on joints, bones, muscles, and nerves and the stress created by such factors as lighting, glare, and noise constitute

Ergonomic stress

Hugh was recently hired as a risk manager for Malvern Manufacturing. He is preparing for his first presentation to the employees working on the manufacturing floor. Hugh realizes that he needs to establish credibility with the audience in order to be persuasive. He decides that he will tell a couple of stories about how he has dealt with similar situations in the past. Which one of the following modes of persuasion is Hugh using?

Ethos

Which one of the following statements is true regarding event tree analysis?

Event tree analysis typically provides only two options, success or failure.

Which one of the following statements about event tree analysis is true?

Event trees analyze the consequences of accidental events.

The weighted average of all the possible outcomes of a theoretical probability distribution is the

Expected value.

Which one of the following provides a measure of the maximum potential damage associated with an occurrence?

Exposure

According to the technique of operations review approach, one category of fault of an organization's management is

Failure to take responsibility.

Which one of the following is a common problem with meetings that leaders should try to avoid?

Having the wrong people attend

In remodeling the primary office location, Phil, who is a partner in his family's construction business, found asbestos in the attic of the building. He is concerned not only about the current tear-out exposure but is also aware that asbestos may have resulted in unidentified harm. In the "quadrants of risk," Phil's concern about the asbestos most likely falls into which one of the following quadrants of risk?

Hazard risks

Which one of the following types of personnel losses usually develops more slowly as the result of some organic or inorganic agent being absorbed, ingested, inhaled, or injected that impairs a function of the body?

Illness

The strategic management process includes five interdependent stages. Which one of the following stages requires all parts of the organization to play a role?

Implementing the strategies

An organization can use securitization to exchange

Income-producing assets for cash.

Like most insurance companies, the majority of Insurance Company's portfolio is invested in bonds. If interest rates increase, the value of the bonds in the portfolio will decrease. This risk to Insurance Company is called

Interest rate risk.

Which one of the following data capture tools has led to an explosion of risk management innovation by allowing smart products to transmit data to each other and to central hubs?

Internet of Things

Which one of the following statements is correct regarding formulating an organization's long-term strategies?

Long-term strategies to improve performance and/or create a competitive advantage, are based on the organization's goals and analysis of internal and external environments.

The traditional definition of risk management reflects the traditional concept of risk as

Negative.

The broad form of the hold-harmless agreement attempts to

Place all financial consequences of potential losses on the transferee.

Which one of the following statements is correct with respect to continuous probability distributions?

One way of presenting a continuous probability distribution is to divide the distribution into a countable number of bins.

Risk indicators such as experience and authority levels apply to which one of the following operational risk classes?

People

AMRM Insurance Company sells insurance in Virginia, North Carolina, South Carolina, and Georgia. The company has compiled a policyowner data base that can be used to send text messages when hurricanes approach. The company provides early warnings, storm updates from the National Weather Service, and hurricane safety measures. The company credits the system with reduced hurricane claims. The use of the texting system is an example of

Preventive analytics.

Root cause analysis (RCA) encompasses a variety of tools, philosophies, and processes. There are several broadly defined RCA approaches, according to their basic approach or field of origin. Which one of the following approaches to RCA evolved from quality control procedures for industrial manufacturing?

Production-based RCA

Which one of the following risk management objectives is critical for a manufacturer seeking new capital from investors, stockholders, and creditors?

Reduce the deterrent effects of hazard risks

In order to achieve collaboration, group leaders must

Remain focused on preventing stakeholders from straying from the common goal.

The risk management professional for a local municipality is concerned that the community's ability to fight fires would be diminished if the fire house and its fire engines were destroyed. On what basis might the risk management professional value the fire engines if resumption of service was her primary goal?

Replacement cost value

A large deductible is similar to a self-insured retention (SIR) in that both

Require the insured organization to retain a relatively large amount of loss.

Which one of the following best describes a cause of a personnel-related loss exposure?

Resignation

Which one of the following is the first step in the text mining process?

Retrieve and prepare text with preprocessing techniques

Internet of Things (IoT) devices, sensors, wearables, and telematics devices have had the greatest impact on which one of the following risk treatment techniques?

Risk modification

Local Petroleum Distributors (LPD) sells gas and diesel fuel to 72 independent gas stations and convenience stores. Receiving accurate data on the fuel needs of its customers is a critical operational concern. LPD installed sensors in the fuel storage tanks owned by each customer. At 11 PM each evening, the sensors send fuel data electronically to LPD. LPD receives the data, and a computer enters each record. The data are analyzed, and the analysis determines which retailers require a fuel shipment in the next three days. The electronic system has increased operational efficiency as shipments can be better coordinated, and retailers are no longer required to measure the fuel level and report manually. LPD's use of a computer to enter the data reported by the sensors is an example of

Robotic process automation.

The process of creating a marketable investment security based on the expected cash flows from a financial transaction is

Securitization.

The chief financial officer for Apex Tires is considering a proposal from the Director of Manufacturing to have half of their production outsourced to an offshore company. After thinking through the plan, he decides they can reduce overall cost and also improve their risk control program. What technique does this outsourcing represent?

Separation

Which one of the following risk control techniques might actually increase loss frequency?

Separation

After one employee was involved in several workplace accidents, the risk manager and the industrial safety engineer concluded that these resulted from ancestry and social environment of the person. Which one of the following accident causation theories or approaches considers this an accident factor?

Sequence of events theory

itness has decided to merge with a yoga studio with two locations near-by. The owners believe that with this complimentary business, they will be able to increase the membership fees for current members and also grow the overall membership. Which one of the following quadrants of risk will be most influenced by this decision?

Strategic risk

A new computer chip that could position a company for explosive growth is an example of

Strategic risk.

Joe works in an auto garage. His work area is cluttered and disorganized. His supervisor is rarely in the area, and Joe lacks direction and proper training. Joe is injured when he receives a severe shock from improper grounding while using a piece of electrical equipment. This example best illustrates the accident causation theory of the

Technique of operations review (TOR) approach.

After a month in which three employees were seriously injured at company paper mills, Ashley, the risk manager of Bright White Paper Company, wanted some answers about the causes of employee injuries. Ashley independently contacted the plant manager and foreman at each of the company's plants. She asked each person to complete a confidential questionnaire regarding safety procedures. After receiving the responses to the questionnaire, Ashley summarized the results and asked the same questions again instructing each person to consider revising their responses based on the initial questionnaire results. The analysis revealed that new workers were not being properly trained and that a lax attitude toward safety was present at the majority of the plants. The team approach to risk identification Ashley employed is called

The Delphi technique.

Which one of the following statements is true regarding the evolution of risk and risk management?

The definition of risk has evolved to include positive as well as negative attributes.

Which one of the following statements about risk management monitoring and reporting is true?

The most important characteristic of a risk report format is that it is useful to the user.

Which one of the following concerns should an organization consider when using a Special Purpose Vehicle (SPV) to generate cash from income-producing assets?

The organization must maintain a high level of disclosure regarding the SPV's assets.

Which one of the following statements is true with regard to linear regression analysis?

The regression line represents the "best fit" of a straight or smoothly curved line to actual historical data from prior periods.

Which one of the following is true about the liability involved in contracting services?

The responsibility that certain duties be performed safely cannot be delegated to another party, such as the duty of common carriers to carry passengers safely.

Which one of the following statements is most accurate?

The text in organizational files, social media posts, news stories, consumer reviews, and so forth is not automatically meaningful to a machine or an algorithm.

Risk managers today differ from traditional risk managers in which one of the following ways?

They attempt to minimize threats and optimize opportunities.

Data analytics is especially useful for

Unstructured data.

Widget Manufacturing board of directors recently adopted a zero-risk tolerance for work place accidents. Initially the chief risk officer thought this was a great idea, however, he has found it very hard to implement. One reason that a zero-risk tolerance policy is hard to implement is because zero-risk tolerance

Will typically result in risk-based decisions that are too rigid and counter-productive.

In today's business environment, holistic risk management needs to be a collaborative effort. Which one of the following types of risk is the best example of why collaboration is needed?

cyber risk

George is a delivery driver for Fantastic Furniture, a large store. While on his way to make a delivery, George ran over a piece of lumber with some nails it. The nails punctured a tire, and George ran off the road and hit a vehicle. The police investigated the accident and took a statement from George and from an eye-witness. In his statement, George admitted that he was talking on his cell phone when he ran over the piece of lumber. The eye-witness estimated George was driving 45 miles-per-hour in a 35 miles-per-hour speed zone. If Fantastic Furniture performs a root cause analysis (RCA) of this accident, which of the following would be identified as a root cause?

inadequate driver training

Samuel is preparing for a speech at a town hall meeting. He knows that he is one of the last speakers on the agenda, and he has only been given five minutes to speak. Samuel decides that he will tell a story about his family that he believes many in the audience will relate to. He hopes the story will leave the audience with a sense of anger. Which one of the following modes of persuasion is Samuel using?

pathos

Which one of the following statements is true regarding the Life Safety Code®?

the standards of the Life Safety Code® are incorporated into the statutes and ordinances of most United States localities.

Magruder Company would like to estimate the number of workers compensation claims to expect next year. Magruder's risk manager ran a regression analysis in which the number of workers compensation claims was the dependent variable and the number of payroll hours worked (in thousands) was the independent variable. The y-intercept from the regression was 3.8. The slope coefficient was 1.4. The risk manager believes that next year Magruder workers will work 80,000 payroll hours. Based on this information, approximately how many workers compensation claims should the risk manager expect next year?

y = 1.4 (80) + 3.8 = 115.8, rounded to 116 claims next year.

InterMountain Railroad carries logs, lumber, plywood, and other forest products in a six-state region in the Western part of the United States. InterMountain self-insures its derailment cargo losses. The risk manager at InterMountain ran a regression using ton-miles (one ton of cargo carried one mile) as the independent variable and dollar losses as the dependent variable. The independent variable is in units per 10,000 and the dependent variable is per 1,000. The resulting regression equation is: y = 2.65 x + (−13.8) Next year, InterMountain estimates that it will record 5,000,000 ton-miles of shipments. Given a building materials shortage, projected for next year, the cargo will be more valuable, so a 12% increase in value factor should be applied to the dollar loss estimate. Based on this information, what are InterMountain's final expected derailment cargo losses for next year, rounded to the nearest $10?

−13.8; slope = 2.65; y = (2.65 × 500) + (−13.8) = 1,311.2; 1,311.2 X 1.12 = 1,468.54; 1,468.54 X 1,000 = 1,468,540. InterMountain's final expected derailment cargo losses for next year are $1,468,540.