This Year, Port City Was Sued for Injuries Sustained When

question 38

Multiple Choice

This year, Port City was sued for injuries sustained when a citizen slipped and broke her hip on the icy City Hall steps.The City attorney estimates the City will be held liable by the courts and a judgment of $300,000 will result.Because of the nature of the case it will likely be four years before the City makes any payment related to the accident.The present value of the likely future payment is $251,000.In the General Fund, at the end of the current fiscal year, Port City should recognize a liability of

• A)$300,000.
• B)$251,000.
• C)$0.
• D)$75,000.

---

Definitions:

Normal Populations

Populations in which the distribution of a variable follows a normal distribution, characterized by a symmetric bell-shaped curve.

Statistical Technique

Methods used in the analysis, interpretation, and presentation of numerical data.

Significance Level

The threshold at which the results of statistical analysis are deemed to be significantly different than what would be expected by chance alone.

Hamburger Quality

A measure of the characteristics or attributes of a hamburger, including factors such as taste, texture, and ingredient freshness.