About Lesson
Risk |
Uncertainty |
1. Imperfect knowledge that may result to adversity and loss where the probabilities of the possible outcomes are known. |
1. Uncertainty refers to situations where it is not possible to attach probabilities to the occurrence of events. The likelihood of their occurrence is never known by the decision maker or by anyone else |
2. Probability can be estimated. |
2. Probability cannot be estimated. |
3. Possible to guess. |
3. Not possible to guess. |
4. Can be insurable. For example: Fail/pass= 1⁄2= 0.5<1. |
4. Can’t insurable. For example: Bird flue |