An Employer Experiencing High Turnover and Seeking to Reduce Pension

question 41

Multiple Choice

An employer experiencing high turnover and seeking to reduce pension cost is likely to prefer:

• A) full vesting after three years.
• B) full vesting after six years.
• C) full vesting after seven years.
• D) to offer portability rights.

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Definitions:

Discrete Random Variables

Variables that take on a countable number of distinct and separate values.

Continuous Random Variables

Variables that can take an infinite number of values within a given range, for instance, weight or temperature.

Probability Distribution

A mathematical function that provides the probabilities of occurrence of various possible outcomes in an experiment.

Standard Deviation

An important measure in statistics that expresses the variability or spread of a dataset relative to its mean, indicating how spread out the data points are.