Insurance Company Records Indicate That 10% of Its Policyholders File

question 6

Multiple Choice

Insurance company records indicate that 10% of its policyholders file claims
Involving theft or robbery of personal property from their homes. Suppose a random
Sample of 400 policyholders is selected. The standard deviation of the sampling
Distribution of the sample proportion of policyholders filing claims involving theft or
Robbery from their homes is

• A) .000225
• B) 0.25
• C) .0455
• D) .1667
• E) .015

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Definitions:

Subsidiary Posting

A detailed entry process in accounting that involves recording transactions in subsidiary ledgers for a more comprehensive financial tracking.

General Ledger

A comprehensive record of all financial transactions over the life of a company, used to compile financial statements.

Cash Receipts

The accumulation of funds, usually through cash or checks, garnered by a company from its operational activities.

Accounts Payable

The amount of money a company owes to its suppliers or creditors for goods or services purchased on credit.