What Effect Did the Requirement to Replace the Minimum Liability

question 4

Multiple Choice

What effect did the requirement to replace the minimum liability requirement with the funded status of a pension plan have for underfunded pension plans?

• A)Return on assets decreased.
• B)There was no effect on return on assets.
• C)The debt-to-Equity ratios increased.
• D)Working capital increased.

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Definitions:

Mann-Whitney U Test

A nonparametric test used to compare differences between two independent groups when the dependent variable is either ordinal or continuous, but not normally distributed.

Paired-difference Experiment

An experimental design where the observations are made in pairs, and the analysis is based on the differences within each pair.

Rejection Region

The range of values for which the null hypothesis is not considered likely and is rejected in a statistical test.

Nonparametric Tests

Statistical tests that do not assume the data come from a particular distribution, often used when dealing with ordinal data or when the normality assumption is violated.