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Task1. You are a risk manager in the manufacturing company and one of your chief responsibilities is securing of property insurance coverage to give protection against damage which is caused by “acts of God,” such as hurricanes, earthquakes, floods, and so forth. You begin the process with due diligence, which is focused on estimating the chances of a single “act of God” occurring in a year, as well as chances of two or more “acts of God” occurring in a year. Consider the dissimilar approaches to assigning probabilities to “acts of God.” Which of the approaches will you be most disposed to select and why? Which of those approaches will you be least inclined to choose and why?

 

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