CAS Exam MAS-I Spring 2018, Question 39
Study guide: Exam MAS-I
A GLM was used to estimate the expected losses per customer across gender and territory. The following information is provided:
- The link function selected is log
- Q is the base level for Territory
- Male is the base level for Gender
- Interaction terms are included in the model
The GLM produced the following predicted values for expected loss per customer:
| Gender \ Territory | Q | R |
|---|---|---|
| Male | 148 | 545 |
| Female | 446 | 4,024 |
Calculate the estimated beta for the interaction of Territory R and Female.
- A) Less than 0.85
- B) At least 0.85, but less than 0.95
- C) At least 0.95, but less than 1.05
- D) At least 1.05, but less than 1.15
- E) At least 1.15
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