PRMIA 8010 Exam - Topic 1 Question 31 Discussion

Actual exam question for PRMIA's 8010 exam

Question #: 31
Topic #: 1

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

A2, 3 and 4

B2 and 3

C1 and 4

DAll of the above

Show Suggested 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.

by Vi at Jul 07, 2023, 06:17 AM

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Viki

9 months ago

Totally agree, 2 and 3 are spot on!

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Donte

9 months ago

Wait, can we really not evaluate probabilities for Knightian uncertainty?

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Octavio

10 months ago

Statement 3 makes sense; risk mitigation is key in management.

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Kathryn

10 months ago

I disagree with statement 4; confidence accounting isn't about fraud.

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Rodrigo

10 months ago

Statement 2 is definitely correct about Knightian uncertainty.

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Venita

10 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

10 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

11 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

11 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

11 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

11 months ago

This looks like a straightforward Scrum question. I'm pretty confident I can tackle this one.

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Stevie

11 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

11 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

11 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

1 year 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

1 year ago

That makes sense, so option D with statements 2, 3, and 4 is the correct choice.

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Alysa

1 year ago

So, option B is incorrect because it includes risk mitigation, which is not related to Knightian uncertainty.

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Viola

1 year ago

I agree, it's about things that could happen but we can't assign probabilities to.

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Amie

1 year ago

I think Knightian uncertainty is a real concept, it refers to unpredictable events.

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Elvera

1 year 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

1 year ago

I agree, option B seems like the most straightforward choice.

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Kattie

1 year ago

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

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Micah

1 year ago

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

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Deeanna

1 year 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

1 year 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

1 year ago

User 2: I agree, those are definitely key approaches to managing risks.

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Cyndy

1 year ago

User 1: I think option 3 is correct, risk mitigation and elimination are important strategies.

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Eveline

1 year 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

1 year ago

User 3: I'm not sure about the other options though.

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An

1 year ago

User 2: I agree, that's an interesting concept.

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Ettie

1 year ago

User 1: I think option 2 is correct, it's about Knightian uncertainty.

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Annelle

1 year ago

I believe all the statements are correct, so I would go with option D.

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Flo

1 year ago

I agree with Kip, Knightian uncertainty and risk mitigation make sense.

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Kip

1 year ago

I think the correct statements are 2 and 3.

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Malcolm

1 year ago

I'm not sure, but I think option D might be correct because it includes all statements.

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Virgilio

1 year ago

I agree with Arlette, option B seems right.

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Arlette

1 year ago

I think option B is correct.

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Mary

1 year 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

1 year ago

I believe option 4 is incorrect. Confidence accounting is not related to accounting frauds.

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Delila

1 year ago

I'm not sure about option 3. Risk mitigation and risk elimination sound similar to me.

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Fidelia

1 year ago

I think option 2 is also correct. Knightian uncertainty does refer to things with unknown probabilities.

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Shawn

1 year ago

I agree, option 1 is correct. The 'frequentist' view is all about conditional probabilities.

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