An Insurance Analyst Working for a Car Insurance Company Would

question 139

Multiple Choice

An insurance analyst working for a car insurance company would like to determine the proportion of accident claims covered by the company. A random sample of 240 claims shows that the insurance company covered 90 accident claims, while 150 claims were not covered. Use a confidence interval of 95 percent and determine the margin of error.

• A) .01513
• B) .03125
• C) .06125
• D) .02965

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Definitions:

Extraordinary Item

Events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence, requiring separate disclosure in financial statements for clarity.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, ultimately revealing the net profit or loss.

Internally Generated Patent

A patent developed through a company's own research and development efforts.

Research and Development

Activities undertaken by businesses or organizations to innovate and introduce new products or services, typically involving substantial investment.