Why does a risk manager typically focus on the upper tail of the probability distribution?

Are you looking for the correct answer to the question “Why does a risk manager typically focus on the upper tail of the probability distribution?”? If that’s the case, you don’t have to worry anymore. Azanswer team is here with the right answer to your question. Please check below to know the answer.

Why does a risk manager typically focus on the upper tail of the probability distribution?

A) The upper tail shows the amount of coverage of the risk a firm faces.

B) The upper tail shows the total risk pool.

C) The upper tail shows the confidence interval of the loss distribution.

D) The upper tail shows the sum of the estimated mean loss plus the risk charge.

Answer: D

The above question Why does a risk manager typically focus on the upper tail of the probability distribution?, Was part of Insurance MCQs & Answers. I hope you got the correct answer to your question. Have a great time ahead.

Leave a Reply 0

Your email address will not be published. Required fields are marked *