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Explain how the company’s severity rate can have a significant increase while the frequency rate has...

Explain how the company’s severity rate can have a significant increase while the frequency rate has a very minor increase.

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Answer #1

Severity rate determines the effect and impact of a particular incident and frequency indicate how frequently ( like yearly once ) chances of occurence. More severity indicate high risk such as failure of breakage of machines, natural disaster etc where severity is very high and frequency is low.

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