Dianna Participates in a Defined Benefit Plan That Uses a Fixed

question 76

Multiple Choice

Dianna participates in a defined benefit plan that uses a fixed formula providing an employee with a benefit of 2% for each year of service,up to a maximum of 30 years.The total percentage accumulated before retirement is applied to the average of her three highest years of salary.Dianna works for 21 years,and the average of her three highest years of salary is $290,000.Calculate the amount of retirement benefits she will receive each year.

• A) $0.
• B) $102,800.
• C) $110,000.
• D) $250,000.
• E) None of the above.

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Definitions:

Confidence Interval Estimate

A statistical range, with a certain level of confidence, that is likely to contain a population parameter.

Standard Deviation

Standard Deviation is a statistical measure that quantifies the amount of variation or dispersion of a set of values.

Population Variance

The measure of how data points in a population are spread out from the average value.

Critical Value

A point on a statistical distribution that represents a threshold at which the null hypothesis is rejected if exceeded.