Everything Else Remaining Constant,when the Sample Size Increases

question 53

Multiple Choice

Everything else remaining constant,when the sample size increases:

• A)the variance decreases.
• B)the variance increases.
• C)the variance is unaffected.
• D)the variance could increase or decrease.

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Definitions:

Actuarially Determined

Calculations made based on actuarial methods and assumptions, often used in determining pension liabilities and insurance premiums.

Pension Benefit Obligation

The reported estimate of the total amount due to employees in relation to pension benefits as per the terms of the pension plan.

Interest Cost

The total amount of interest that will be incurred over the lifetime of a debt.

Service Cost

The actuarial present value of benefits attributed by the pension plan formula to employee service during the period.