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AIDA 182 LATEST 2024 – 2025 COMPLETE 200
ACTUAL EXAM QUESTIONS WITH CORRECT
VERIFIED ANSWERS / RATED A+
What is true of regression analysis? - Correct Answer - The regression line represents the best fit to historical data from prior periods.
What is trend analysis? - Correct Answer - An analysis that identifies mathematical patterns in past losses and projects the patterns into the future.
Regression analysis assumes what? - Correct Answer - The variable being foretasted varies predictably with another variable.
What is a key performance indicator? - Correct Answer - A measure of the performance of a specific activity at a predetermined level or amount.
What is an example of a key performance indicator based on a ratio? - Correct Answer - Inventory turnover.
What is the progress of a key performance indicator? - Correct Answer - A measure of the progress an organization has made toward attaining its goals within a specific amount of time.
What answers the question, what shows we are a success and working towards goals, financial or nonfinancial? - Correct Answer - A key performance indicator.
Organizations goals and objectives are met by establishing measurable standards.What is true about those standards? - Correct Answer - For each key performance indicator, there is a tolerance level for how much deviation from the standard established in the key performance indicator will be acceptable. 1 / 3
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Insurance reps will get a bonus if retention is increased by 5%, this is an example of what? - Correct Answer - The standard of a corrective measure linked with an identified tolerance level.
Customer satisfaction is a strategic objective, what is a critical success factor to for this objective? - Correct Answer - High customer retention.
What case reserving method establishes average amount for all claims with similar characteristics such as age, health, and marital status? - Correct Answer - Tabular method.
What reserving method should be used for a large book of first party automobile policies? - Correct Answer - Average method.
What method uses historical relationships between incurred but not reported reserves and reported losses in incurred but not reported forecasts? - Correct Answer - Percentage method.
What do INBR reserves represent the different between? - Correct Answer - Ultimate losses and reported incurred losses.
A main characteristic of a key risk indicator is? - Correct Answer - They are based on quantifiable information.
What key risk indicator might a contractor monitor? - Correct Answer - Budget variances.
What key risk indicator might a manufacturer monitor? - Correct Answer - Cost of raw materials.
What are key risk indicators? - Correct Answer - They are based on quantifiable information and support management decisions. 2 / 3
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Key risk indicators are used to plan for and respond to risk which can do what? - Correct Answer - A key risk indicator can reveal an upward trend in the level of a risk that, if it continues, will exceed the designated risk threshold for that risk.
Key risk indicators enhance what? - Correct Answer - Efficiency.
Key risk indicators help organizations identify issues that can lead to losses and key risk indicators are based on what? - Correct Answer - Strategic objectives.
The CEO is interested in the key risk indicators measuring a company's profitability.What area of measurement will the risk manager want to look at? - Correct Answer - Aged accounts receivable.
What term measures the significance of a risk? - Correct Answer - Risk criteria.
What departments usually have the most detailed key risk indicators? - Correct Answer
- Department levels.
What do business process managements do? - Correct Answer - Focus on coordinating activities toward the preferences and needs of customers and aligning operational with strategic goals.
What business process management step is often skipped? - Correct Answer - Identify processes.
Describe the first step of the business process management. - Correct Answer - Critical processes that support achievement of the organization's goals are selected for analysis.
Business process management focuses on what? - Correct Answer - Customer satisfaction.
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