Question: 6. What is the difference between the maximum possible loss and probable maximum loss. 7. Explain the law of large numbers. 8. Explain five pre-loss

6. What is the difference between the maximum possible loss and probable maximum loss. 7. Explain the law of large numbers. 8. Explain five pre-loss objectives of a risk management program 9. How does objective risk differ from subjective risk? 10. Risk managers use a number of methods for managing risk. For each of the following what method of handling risk is used a. The decision not to carry earthquake insurance on a firm's main manufacturing plant. b. The installation of an automatic sprinkler system in a hotel. c. The decision not to produce a product that might result in a product liability lawsuit d. Requiring retailers who sell the firm's product to sign an agreement releasing the firm from liability if the product in a product liability lawsuit

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