Parker Department Stores Has Been Hurt in Recent Months by a Large

question 30

Multiple Choice

Parker Department Stores has been hurt in recent months by a large increase in shoplifting losses.Parker's risk manager concluded that while the frequency of shoplifting losses was high,the severity is still relatively low.What is (are) the appropriate risk management technique(s) to apply to this problem?

• A)retention
• B)loss control and retention
• C)transfer through insurance
• D)avoidance

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Definitions:

Normal Distribution

A type of statistical distribution where data forms a symmetrical bell-shaped curve, with most values clustering around a central mean value.

Illusory Correlation

The cognitive mistake of perceiving a relationship between two variables even when none exists, often leading to erroneous conclusions or stereotypes.

Negative Correlation

A statistical relationship between two variables in which one variable increases as the other decreases.

Positive Correlation

A relationship between two variables where both variables move in the same direction.