Question

The methodology of risk assessment that uses hard numbers (dollars, percentages, etc.) to prioritize risk is known as _____________________ risk assessment.

a) Qualitative
b) Quantitative
c) Predictive
d) Descriptive

Answer 1

The risk assessment method that uses numerical values like dollars or percentages is called quantitative risk assessment, with data being either quantitative discrete or quantitative continuous. Hence, option (b) is correct.

Step-by-step explanation:

The methodology of risk assessment that uses hard numbers, such as dollars and percentages, to prioritize risk is known as quantitative risk assessment.

In this context, quantitative data involves numbers and can be measured and expressed numerically. Quantitative data can be further classified into two subcategories: quantitative discrete data, which can only take on certain discrete values (like the number of times per week something occurs), and quantitative continuous data, which can take on any value within a range (like the duration of time).

For example, the statement 'A ream of paper has 500 sheets in it' is a quantitative description because it provides a numerical value that can be counted. In contrast, the statement 'The weather outside is snowy' is a qualitative description because it describes an attribute or quality without using numerical values.