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What is risk and probability?

Risk refers to the condition under which individuals can define a problem, specify the probability of certain events, identify alternative solutions, and state the probability of each solution leading to a result. Risk generally means that the problem and alternative solutions fall somewhere between the extremes of being certain and being unusual and ambiguous. 

Probability is the percentage of times that a specific result would occur if an individual were to make the same decision a large number of times. 

The two types of probability are: objective probability and subjective probability.   

Objective probability is the likelihood that a specific result will occur, based on hard facts and numbers.   

Subjective probability is the likelihood that a specific result will occur, based on personal judgment.

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