Exam MAS-I Practice Question 98

Study guide: Exam MAS-I

A fleet insurer's data file has 5,000 records, one per fleet-year, with claim counts, exposure in vehicle-years, a territory (Central, East, North or West) and the fleet's average vehicle age in years, which ranges from 0 to 20. A Poisson GLM is fitted in R:

glm(formula = claims ~ territory + veh_age, family = poisson,
    data = fleet, offset = log(exposure))

Coefficients:
                Estimate Std. Error z value Pr(>|z|)
(Intercept)    -2.181899   0.045474 -47.981  < 2e-16 ***
territoryEast   0.234277   0.049284   4.754 2.00e-06 ***
territoryNorth  0.141441   0.054419   2.599  0.00935 **
territoryWest  -0.081736   0.058413  -1.399  0.16173
veh_age        -0.023588   0.003254  -7.250 4.18e-13 ***

(Dispersion parameter for poisson family taken to be 1)

    Null deviance: 4816.1  on 4962  degrees of freedom
Residual deviance: 4723.0  on 4958  degrees of freedom
  (37 observations deleted due to missingness)
AIC: 9006.9

Determine which of the following statements are true.

I. The intercept, $-2.1819$ , is the log of the expected claim frequency of a Central fleet whose vehicle age equals the mean vehicle age in the data.
II. The model was fitted to 4,963 of the 5,000 records.
III. Holding vehicle age fixed, West's expected frequency is about 8% below Central's, and the difference is not significant at the 5% level.
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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Exam MAS-I Practice Question 98

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