The Cookie Company (CC) has 1200 employees and the chance of an injury to employees is 0.05.
Question:
The Cookie Company (CC) has 1200 employees and the chance of an injury to employees is 0.05. Suit maker Lauren Alexander (LA) has 750 employees and the chance of an injury to employees is 0.08. The possible variation of losses for both are 34 and 40 respectively. What is the objective risk of both companies and which is more risky?
A. 46.6% for CC, 56.7% for LA; LA is more risky
B. 56.6% for CC, 66.7% for LA; LA is more risky
C. 56.6% for CC, 46.7% for LA; CC is more risky
D. 46.6% for CC, 66.7% for LA; CC is more risky
Expressed as a percentage, what is the degree of objective risk if a company owns 1,000 cars, has averaged 25 collision losses per year, the collision losses will very likely range between 20 and 30, and last year's loss experience was 23?
A. 43.5 percent
B. 92.0 percent
C. 25.0 percent
D. 40.0 percent
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley