Exam MAS-I Practice Question 129

Study guide: Exam MAS-I

Before fitting a severity GLM to a personal auto data set, an actuary plans one exploratory display for each task below. Match each task to the display that answers it most directly. An option may be used more than once or not at all.

Part a (1 point)

Insured value (continuous): see whether claim severity changes with it in a straight-line way or along a curve.

A) Histogram of the log of the variable
B) Bar chart of exposure by level
C) Scatter plot against the response
D) Side-by-side box plots of the response by level
E) Correlation matrix

Part b (1 point)

Territory (40 levels): find levels with too little data to support their own coefficient.

A) Histogram of the log of the variable
B) Bar chart of exposure by level
C) Scatter plot against the response
D) Side-by-side box plots of the response by level
E) Correlation matrix

Part c (1 point)

Five continuous predictors: screen for pairs that move together closely enough to cause trouble in the fit.

A) Histogram of the log of the variable
B) Bar chart of exposure by level
C) Scatter plot against the response
D) Side-by-side box plots of the response by level
E) Correlation matrix

Part d (1 point)

Claim severity (positive, heavily right-skewed): see the shape of its distribution clearly.

A) Histogram of the log of the variable
B) Bar chart of exposure by level
C) Scatter plot against the response
D) Side-by-side box plots of the response by level
E) Correlation matrix

Part e (1 point)

Vehicle class (6 levels): see whether claim severity differs by class.

A) Histogram of the log of the variable
B) Bar chart of exposure by level
C) Scatter plot against the response
D) Side-by-side box plots of the response by level
E) Correlation matrix

Answer this question and see the worked solution