Actuarial Notes

CAS Exam MAS-I Fall 2019, Question 31

Study guide: Exam MAS-I

In order to predict individual candidates' test scores a regression was performed using one independent variable, Hours of Study, plus an intercept. Below is a partial table of data and model results:

Candidate Test Score Hours of Study Leverage Standardized Residuals
1 2,041 538 0.6205 -1.3477
2 2,502 548 0.2018 -0.4171
3 2,920 528 0.6486 -1.1121
4 2,284 608 0.2807 1.1472

Calculate the number of observations above that are influential using Cook's Distance with a unity threshold.

  • A) 0
  • B) 1
  • C) 2
  • D) 3
  • E) 4

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