Exam MAS-I Practice Question 91

Study guide: Exam MAS-I

Determine which of the following statements about extended linear models are true.

• I. The model Y_i = \beta_0 + \beta_1 x_i + \beta_2 x_i^2 + \varepsilon_i, with independent Normal errors, is a linear model even though the fitted curve is a parabola in x.

• II. A Gamma GLM for claim severity with a log link specifies E[\ln Y_i] as a linear function of the predictors.

• III. Ordinary least-squares regression is the GLM whose response distribution is Normal and whose link is the identity.

• A) I only

• B) I and II only

• C) I and III only

• D) II and III only

• E) The answer is not given by (A), (B), (C), or (D)

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Concepts tested

• Extended Linear Model
• Generalized Linear Model
• Link Function
• Linear Regression
• Polynomial Regression

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• Exam MAS-I Practice Question 76
• Exam MAS-I Practice Question 92