What does a statement predicting a loss of $100,000 - $400,000 describe?

A statement predicting a loss of $100,000 - $400,000 describes a "probable" outcome because it reflects a range of potential losses that are considered likely to occur based on certain risk factors and scenarios. In risk management and financial contexts, probabilities are often assigned to various outcomes to help organizations plan for and mitigate against losses.

When we say something is probable, it indicates a likelihood that is stronger than just hypothetical possibilities but not guaranteed. This aligns with assessing risks, where estimates encompass a range of impacts that may occur when facing certain vulnerabilities. In this case, the mentioned loss figures are not assured but are expected to be within that range based on available data or analyses, thus categorizing them as probable.

The other terms, while related to risk and loss discussions, convey different meanings. Expected would imply that a loss is anticipated as a definite outcome, which is not the case here since we are discussing a range of potential losses. Potential refers to the possibilities without necessarily indicating likelihood, making it broader and less specific than probable. Certain denotes outcomes that will undoubtedly happen, which does not fit the context of uncertain financial losses. Hence, the reasoning solidly supports that the correct answer is “probable.”