If the Rate of a Particular Disorder Occurring in the Population

question 63

Multiple Choice

If the rate of a particular disorder occurring in the population is low,what impact does this have on the classification of individuals based on the results of a psychological test?

• A) There will be no impact on the accuracy of the classification.
• B) More individuals will be incorrectly classified as not having the disorder.
• C) More individuals will be incorrectly classified as having the disorder.
• D) The impact cannot be determined based on the information provided.

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Definitions:

Actuarial Error

Mistakes in the calculations or assumptions made by actuaries, which can affect insurance premiums, pension plans, and other financial assessments.

Consumption Smoothing

An economic concept that describes how individuals attempt to achieve a stable level of consumption over their lifetime, regardless of fluctuations in income.

Defined Benefit Pension

A type of pension plan where an employer promises a specified monthly benefit upon retirement, which is predetermined by a formula based on the employee's earnings history, tenure of service, and age.

Defined Contribution Plan

A retirement plan where contributions are defined, but the eventual payout depends on the investment's success.