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

---

Definitions:

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of values from the mean.

Finite Population Correction Factor

A factor applied in sample size formulae to adjust for the effect of sampling without replacement from a finite population.

Mean Salary

The average amount of money earned by employees in a specific job, industry, or region, calculated by summing all salaries and dividing by the number of employees.

Standard Error

An estimate of the statistical accuracy of an estimate, showing how much the sample mean is expected to vary from the true population mean.