Actuarial Notes

CAS Exam MAS-I Spring 2019, Question 27

Study guide: Exam MAS-I

A statistician uses a logistic model to predict the probability of success, \pi, of a binomial random variable.

You are given the following information:

  • There is one predictor variable, X, and an intercept in the model
  • The estimates of \pi at x = 4 and 6 are 0.88877 and 0.96562, respectively

Calculate the estimated intercept coefficient, b_0, in the logistic model that produced the above probability estimates.

  • A) Less than -1
  • B) At least -1, but less than 0
  • C) At least 0, but less than 1
  • D) At least 1, but less than 2
  • E) At least 2

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