Exam MAS-I Practice Question 93

Study guide: Exam MAS-I

A personal auto insurer is building four GLMs from the same policy file. For each response described below, choose the response distribution and link that best match the behaviour of the data. An option may be used more than once or not at all.

Part a (1 point)

Loss cost per policy: about 92% of policies have no loss, and the rest have a positive, right-skewed loss amount.

• A) Poisson, log link
• B) Gamma, log link
• C) Binomial, logit link
• D) Tweedie with power p between 1 and 2, log link
• E) Normal, identity link

Part b (1 point)

Whether each policy renews at its next term (yes or no).

• A) Poisson, log link
• B) Gamma, log link
• C) Binomial, logit link
• D) Tweedie with power p between 1 and 2, log link
• E) Normal, identity link

Part c (1 point)

The number of claims each policy reports during its term, with terms of different lengths.

• A) Poisson, log link
• B) Gamma, log link
• C) Binomial, logit link
• D) Tweedie with power p between 1 and 2, log link
• E) Normal, identity link

Part d (1 point)

The average size of the claims of each policy that had at least one claim: always positive, right-skewed, with a standard deviation roughly proportional to the mean.

• A) Poisson, log link
• B) Gamma, log link
• C) Binomial, logit link
• D) Tweedie with power p between 1 and 2, log link
• E) Normal, identity link

Answer this question and see the worked solution

Concepts tested

• Model Structure
• Link Function
• Poisson Regression
• Logistic Regression
• Gamma
• Tweedie Distribution
• Response Variable

More questions from this set

• Exam MAS-I Practice Question 92
• Exam MAS-I Practice Question 94