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PRMIA 8010 Exam - Topic 1 Question 31 Discussion

Actual exam question for PRMIA's 8010 exam
Question #: 31
Topic #: 1
[All 8010 Questions]

Which of the following statements are correct?

1. A reliance upon conditional probabilities and a-priori views of probabilities is called the 'frequentist' view

2. Knightian uncertainty refers to things that might happen but for which probabilities cannot be evaluated

3. Risk mitigation and risk elimination are approaches to reacting to identified risks

4. Confidence accounting is a reference to the accounting frauds that were seen in the past decade as a reflection of failed governance processes

Show Suggested Answer Hide Answer
Suggested Answer: D

The change in the price of a security that follows a Weiner process is determined by its standard deviation and expected return. To get the price itself, we need to add this change in price to the current price. Therefore the future price in a Weiner process is determined by all three of current price, expected return and standard deviation.


Contribute your Thoughts:

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Viki
3 months ago
Totally agree, 2 and 3 are spot on!
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Donte
3 months ago
Wait, can we really not evaluate probabilities for Knightian uncertainty?
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Octavio
4 months ago
Statement 3 makes sense; risk mitigation is key in management.
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Kathryn
4 months ago
I disagree with statement 4; confidence accounting isn't about fraud.
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Rodrigo
4 months ago
Statement 2 is definitely correct about Knightian uncertainty.
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Venita
4 months ago
I'm a bit confused about confidence accounting; I thought it was more about financial reporting than just fraud, so I'm not sure about statement 4.
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Malissa
4 months ago
I practiced a question similar to this about risk management, and I think statement 3 makes sense since mitigation and elimination are both strategies.
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Samira
5 months ago
Knightian uncertainty definitely relates to situations where we can't assign probabilities, so I think statement 2 is correct.
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Sharika
5 months ago
I remember studying the difference between frequentist and Bayesian views, but I'm not sure if the first statement is accurate.
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Rima
5 months ago
Response processor? That doesn't sound right to me. I'm going to rule that one out and focus on the other choices.
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Colton
5 months ago
This looks like a straightforward Scrum question. I'm pretty confident I can tackle this one.
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Stevie
5 months ago
Okay, let me think this through step-by-step. The Preliminary Phase is the first phase, so I need to focus on the key objectives of that phase specifically.
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Alecia
5 months ago
Okay, this looks like a straightforward question about the FTag trees in ACI. I'm confident I can work through the options and identify the correct answer.
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Clorinda
5 months ago
I think the key here is that Acme wants the "least amount of IT equipment onsite." That points to a cloud-based or distributed network services provider solution.
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Tyisha
9 months ago
Wait, is 'Knightian uncertainty' a real thing? Did someone just make that up to confuse us? I'm going to pretend I know what that means and go with option D.
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Mee
8 months ago
That makes sense, so option D with statements 2, 3, and 4 is the correct choice.
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Alysa
8 months ago
So, option B is incorrect because it includes risk mitigation, which is not related to Knightian uncertainty.
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Viola
9 months ago
I agree, it's about things that could happen but we can't assign probabilities to.
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Amie
9 months ago
I think Knightian uncertainty is a real concept, it refers to unpredictable events.
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Elvera
10 months ago
Confidence accounting? Sounds like an attempt at humor, but I have no idea what that means. I'm going to have to go with option B, as it seems the most straightforward.
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Nenita
8 months ago
I agree, option B seems like the most straightforward choice.
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Kattie
8 months ago
Risk mitigation and risk elimination are approaches to reacting to identified risks.
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Micah
9 months ago
I think Knightian uncertainty refers to things that might happen but for which probabilities cannot be evaluated.
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Deeanna
10 months ago
Risk mitigation and elimination are definitely approaches to dealing with risks, so option 3 is spot on. But I'm not sure about the other options.
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Reed
9 months ago
User 3: I'm not sure about the other options, but it seems like option 3 is a good choice.
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Nada
9 months ago
User 2: I agree, those are definitely key approaches to managing risks.
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Cyndy
9 months ago
User 1: I think option 3 is correct, risk mitigation and elimination are important strategies.
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Eveline
10 months ago
Knightian uncertainty is a great concept, and option 2 definitely captures it. As for the other options, I'm a bit unsure.
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Rickie
8 months ago
User 3: I'm not sure about the other options though.
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An
8 months ago
User 2: I agree, that's an interesting concept.
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Ettie
9 months ago
User 1: I think option 2 is correct, it's about Knightian uncertainty.
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Annelle
10 months ago
I believe all the statements are correct, so I would go with option D.
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Flo
10 months ago
I agree with Kip, Knightian uncertainty and risk mitigation make sense.
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Kip
10 months ago
I think the correct statements are 2 and 3.
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Malcolm
10 months ago
I'm not sure, but I think option D might be correct because it includes all statements.
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Virgilio
10 months ago
I agree with Arlette, option B seems right.
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Arlette
10 months ago
I think option B is correct.
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Mary
11 months ago
The 'frequentist' view is definitely about conditional probabilities, not the other way around. I'm pretty sure option 1 is correct.
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Jesusita
9 months ago
I believe option 4 is incorrect. Confidence accounting is not related to accounting frauds.
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Delila
9 months ago
I'm not sure about option 3. Risk mitigation and risk elimination sound similar to me.
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Fidelia
10 months ago
I think option 2 is also correct. Knightian uncertainty does refer to things with unknown probabilities.
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Shawn
10 months ago
I agree, option 1 is correct. The 'frequentist' view is all about conditional probabilities.
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