The Actual Return on Plan Assets

question 9

Multiple Choice

The actual return on plan assets

• A) Is equal to interest expenses accrued each year on the projected benefit obligation, just as it does on any discounted debt.
• B) Is equal to the expected rate of return times the fair value of the plan assets at the beginning of the period.
• C) Is equal to the change in the fair value of the plan assets during the year.
• D) Includes interest, dividends, and changes in the fair value of the fund assets

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Definitions:

Null Hypothesis

A default hypothesis that there is no significant difference or relationship between specified populations, any observed effect is due to chance.

Hypothesis Testing

A statistical method used to determine if there is enough evidence in a sample of data to infer that a certain condition is true for the entire population.

Population Parameters

Numerical characteristics that summarize or describe aspects of a population, such as mean, variance, or standard deviation.

Test Statistic

A measure calculated from a sample data to perform a hypothesis test.