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.
pg. 1
,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.
pg. 2
, 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 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.
pg. 3
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