CAS Exam MAS-I Spring 2018, Question 27

Study guide: Exam MAS-I

You are given the following information about an insurance policy:

• The probability of a policy renewal, p(X), follows a logistic model with an intercept and one explanatory variable.
• \beta_0 = 5
• \beta_1 = -0.65

Calculate the odds of renewal at x = 5.

• A) Less than 2
• B) At least 2, but less than 4
• C) At least 4, but less than 6
• D) At least 6, but less than 8
• E) At least 8

Answer this question and see the worked solution

Concepts tested

• Generalized Linear Model
• Link Function
• Logistic Regression

More questions from this set

• CAS Exam MAS-I Spring 2018, Question 26
• CAS Exam MAS-I Spring 2018, Question 28