The Most Valuable Single Technique in Personal Risk Management to Assist

question 68

Multiple Choice

The most valuable single technique in personal risk management to assist an individual in determining how much life insurance is needed is:

• A) Computing the Human Life Value.
• B) Using the probability of death each year,prevailing interest rates and assumed inflation rates to find the discounted present value of a future income stream.
• C) Assessing the family's total economic needs and subtracting financial resources available to meet those needs.
• D) Estimating the sum of money which,when paid in installments,will produce the same income as the person would have earned,after deducting assumed amounts for taxes and personal maintenance expenses.
• E) Using a multiple of earnings adjusted for occupation.

---

Definitions:

Numerator

The top number in a fraction, indicating how many parts of a whole are considered.

T Test

A statistical test used to compare the means of two groups or to compare a sample mean to a known value, under the assumption that the sample comes from a normally distributed population.

Dependent Means

Refers to averages that are related or influence each other, typically within paired or matched samples in statistical analyses.

Sample Size

The number of observations or replicates included in a statistical sample.