The Compensation Committee Is A_____

question 86

Multiple Choice

The compensation committee is a_____.

• A) subgroup of the board of directors that is composed of directors who are not officers of the firm
• B) subgroup of the management that is composed of managers who are currently the officers of the firm
• C) subgroup of the union that is composed of employees who are not officers of the firm
• D) subgroup of the shareholders that is composed of investors who are currently the officers of the firm

---

Definitions:

Expected Value

The long-run average value of repetitions of the experiment it represents, in probability and statistics.

Error

The difference between a measured or calculated value and its true value; often used in statistics and scientific experiments.

Confidence Interval Estimate

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter.

Prediction Interval

An estimate of an interval in which future observations will fall, with a certain probability, given what has already been observed.