Which One of the Following Is True of Defined Contribution

question 17

Multiple Choice

Which one of the following is true of defined contribution plans?

• A)They shift the investment risk to the employer.
• B)They present greater administrative challenges to employers.
• C)They are a declining in popularity.
• D)They are more prevalent in smaller than larger companies.

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Definitions:

Standard Deviation

A metric that represents the extent of variability or spread within a group of numbers, demonstrating how far apart the values are from their mean.

Sample Observations

Specific instances from a larger population used to gather data and draw conclusions.

Probability

A measure of the likelihood that an event will occur, quantified as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Sample Mean

The average value computed from a sample of data, representing an estimate of the population mean.