Which of the Following Is True About the Level of Risk

question 23

Multiple Choice

Which of the following is true about the level of risk involved with incentive pay?

• A)The level of risk decreases as incentive pay represents a greater proportion of total core compensation.
• B)The level of risk is lower for higher-level employees than those who are lower in the job structure.
• C)The level of risk depends on the extent to which employees control the attainment of a desired goal.
• D)The level of risk is dependent on subjective performance appraisals.

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Definitions:

Sample Proportion

The proportion of items in a sample that meet a specified condition, often used as an estimator of the population proportion.

Binomial Distribution

A probability distribution representing the number of successes in a fixed number of independent Bernoulli trials with the same success probability.

Probability of Success

The likelihood of achieving a desired outcome or result in an experiment or trial.

Normal Distribution

A bell-shaped data distribution where most observations cluster around the central peak and the probabilities for values further away from the mean taper off equally in both directions.