Actuarial Notes

CAS Exam MAS-I Fall 2018, Question 45

Study guide: Exam MAS-II

You are given the following quarterly rainfall totals over a two-year span:

Quarter Rainfall
2016 q1 25
2016 q2 19
2016 q3 10
2016 q4 32
2017 q1 26
2017 q2 38
2017 q3 22
2017 q4 20

Calculate the sample lag 4 autocorrelation.

  • A) Less than 0.0
  • B) At least 0.0, but less than 0.3
  • C) At least 0.3, but less than 0.6
  • D) At least 0.6, but less than 0.9
  • E) At least 0.9

Answer this question and see the worked solution

Concepts tested

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