Exam MAS-I Practice Question 133
Study guide: Exam MAS-I
A data set of 80,000 auto policies records each policy's number of claims in the year. The variable takes only the values 0 to 5, and 88% of policies have no claim. Before fitting a frequency model, the actuary wants one univariate display of this variable that shows how often each value occurs.
Which display serves that purpose best?
- A) A histogram with 20 equal-width bins over the interval from 0 to 5
- B) A box plot, with outliers flagged at 1.5 times the IQR beyond the box
- C) A normal QQ plot of the claim counts against standard normal quantiles
- D) A scatter plot of each policy's claim count against its policy number
- E) A bar chart of the number of policies with 0, 1, 2, 3, 4 and 5 claims
Answer this question and see the worked solution