3.10 Cost benefit analysis

R8 Living with uncertainty

	Content	Additional information
R8.1	understanding that many decisions have to be made when outcomes cannot be predicted with certainty

	Content	Additional information
R9.1	understanding that the actions that can be taken to reduce or prevent specific risks may have their own costs	including the costs and benefits of insurance

	Content	Additional information
R10.1	using probabilities to calculate expected values of costs and benefits of decisions	other factors must be considered, for example the regulatory framework (eg compulsory insurance) minimising the maximum possible loss
R10.2	understanding that calculating an expected value is an important part of such decision making

Content

Additional information

R10.1

using probabilities to calculate expected values of costs and benefits of decisions

other factors must be considered, for example

R10.2

understanding that calculating an expected value is an important part of such decision making