Question: Stress testing is the process where we evaluate a number of statistically defined possibilities to determine the most damaging combination of events and the loss

Stress testing is the process where we evaluate a number of statistically defined possibilities to determine the most damaging combination of events and the loss they would produce. Southwest conducted various stress tests to identify company robustness. The following were taken into consideration when the stress test was conducted: risk of a recession, increased competition, and high fuel prices. Fuels prices are a variable. Fuel hedging is in place to help minimize the impact of the cost of fuel

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