When a Corporation Insures a Risk, It Is

question 73

Multiple Choice

When a corporation insures a risk, it is:

• A)retaining its risk.
• B)avoiding its risk.
• C)retaining its risk with loss control.
• D)assuming its risk.
• E)transferring its risk.

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Definitions:

Z-test

A statistical test used to determine if there is a significant difference between sample and population means, assuming the population variance is known.

Chi-squared Test

The Chi-squared test is a statistical method used to determine if there is a significant difference between the expected and observed frequencies in one or more categories.

Test Statistic

A quantity derived from sample data used to make a decision about a hypothesis test.

Z

'Z' often represents the Z-score in statistics, which is the number of standard deviations a data point is from the mean of the data set.