What Is the Numeric Basis on Which Workers' Compensation Rate

question 20

Multiple Choice

What is the numeric basis on which workers' compensation rate group premiums are calculated and published?

• A)dollars per $100 of insurable earnings
• B)dollars per $1,000 of insurable earnings
• C)dollars per 100 full-time employees
• D)dollars per 1,000 full-time employees

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a low standard deviation indicates that the values are close to the mean.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space.

Expected Value

The calculated average of all possible values in a probability distribution, weighted by their probabilities.

Bank Officers

Individuals responsible for overseeing the day-to-day operations and financial matters of a bank.