Exam MAS-I Practice Question 132
Study guide: Exam MAS-I
Before modeling homeowners claim severity, an actuary draws side-by-side box plots by construction type. The boxes and whiskers (in thousands) are:
| Construction | Claims | Lower whisker | Q_1 |
Median | Q_3 |
Upper whisker | Outliers |
|---|---|---|---|---|---|---|---|
| Frame | 4,000 | 0.4 | 2.0 | 3.0 | 4.4 | 8.0 | 11.0, 15.0 |
| Masonry | 3,500 | 0.5 | 2.1 | 3.2 | 4.6 | 8.2 | 12.0 |
| Fire-resistive | 60 | 0.3 | 1.0 | 1.5 | 2.2 | 4.0 | 6.5 |
Which conclusion is best supported by the plots?
- A) Construction type can be dropped, since the three boxes overlap one another
- B) Frame needs a level of its own, since its outliers are the most severe claims
- C) Frame and masonry could share a level; fire-resistive looks lower but rests on few claims
- D) Fire-resistive is the most right-skewed class, since its whiskers are the shortest
- E) The classes differ only in spread, so construction belongs in the dispersion, not the mean
Answer this question and see the worked solution