Chapter 7: End of Chapter Exercises Homework . Due in 5 days 0 3 /13 answered Answered - Correct! No attempts left Chapter 7 Review Questions 3 Homework Unanswered Explain how an investment in loss control may change the optimal mix between risk retention and risk transfer in a given situation. Effective loss control can reduce the frequency and severity of expected losses. This reduction may provide the opportunity for a company to retain more than it would without the loss control techniques. The company may decide to take a higher deductible or self-insure. Effective loss control can increase the frequency and severity of expected losses. This increase may provide the opportunity for a company to retain more than it would without the loss control techniques. The company may decide to take a lower deductible or self-Insure. Unanswered 1 attempt left 3 Full