CAS Exam MAS-I Fall 2019, Question 32
Study guide: Exam MAS-I
You have three competing GLMs that each predict the number of claims under an insurance policy, and are evaluating the models using AIC and BIC. All models are trained on the same dataset of 300 observations. These models are summarized below:
| Model | Likelihood | Number of Parameters |
|---|---|---|
| 1 | 0.0456 | 4 |
| 2 | 0.0567 | 5 |
| 3 | 0.0575 | 6 |
The following are three statements about the fit of these models:
- I. Model #1 is best based on BIC
- II. Model #2 is best based on AIC
- III. Model #3 is best based on BIC
Determine which of the above statements are true.
- A) I only
- B) II only
- C) III only
- D) I, II and III
- E) The answer is not given by (A), (B), (C), or (D)
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