An Increase in the Present Value of a Defined Benefit

question 2

Multiple Choice

An increase in the present value of a defined benefit obligation resulting from employee service in the current period is referred to as:

• A) the current service cost
• B) the past service cost
• C) the interest cost
• D) an actuarial gain or loss

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Definitions:

Coefficient of Variation

A uniform metric showing the spread of a probability or frequency distribution as a percentage relative to the average.

Standard Deviation

A statistic that measures the dispersion or variation of a set of data points from their mean.

Variance

A measure of how much the values in a dataset vary or deviate from the mean, technically the average of the squared differences from the Mean.

Coefficient of Variation

A normalized measure of the dispersion of a probability distribution or frequency distribution, often expressed as a percentage.