Each Line of Business Has Its Own Break-Even Point Because

question 68

Multiple Choice

Each line of business has its own break-even point because:

• A)the firm uses different strategies for each line to mitigate risks.
• B)each line in an industry has a different loss payment time horizon but similar length of time for the investment of the premiums.
• C)each line in an industry has varying length of time for the investment of premiums but similar loss payment time horizon.
• D)all lines in an industry have similar loss payment time horizon and length of time for the investment of the premiums.
• E)each line has a different loss payment time horizon and length of time for the investment of the premiums.

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Definitions:

Double-blind Procedure

A research or testing method in which neither the subjects nor the experimenters know which subjects are in the control or experimental groups, to eliminate bias.

Experimental Treatment

A novel therapeutic approach or intervention being tested for its effectiveness, often within the context of a clinical trial.

Dependent Variable

The outcome factor; the variable that may change in response to manipulations of the independent variable.

Independent Variable

In experimental research, the variable that is manipulated or changed to observe its effect on a dependent variable.