Actuarial Notes

Exam MAS-I Practice Question 138

Study guide: Exam MAS-I

Five scatter plots each show a response against a continuous predictor x before any model is fitted. Match each description to what it most directly indicates for the model. An option may be used more than once or not at all.

Part a (1 point)

The points are centred along a rising straight line, tightly packed at low x and spreading into a wide band at high x, like a wedge.

  • A) Needs a transformation or non-linear term
  • B) Variance grows with the mean
  • C) High-leverage point to investigate
  • D) Little or no association
  • E) A categorical variable is missing

Part b (1 point)

The points form a narrow band that rises steeply at low x and flattens out at high x.

  • A) Needs a transformation or non-linear term
  • B) Variance grows with the mean
  • C) High-leverage point to investigate
  • D) Little or no association
  • E) A categorical variable is missing

Part c (1 point)

Two parallel bands of points each rise with x, one sitting well above the other, with few points between them.

  • A) Needs a transformation or non-linear term
  • B) Variance grows with the mean
  • C) High-leverage point to investigate
  • D) Little or no association
  • E) A categorical variable is missing

Part d (1 point)

The points form a round, shapeless cloud, with no trend in either the centre or the spread across x.

  • A) Needs a transformation or non-linear term
  • B) Variance grows with the mean
  • C) High-leverage point to investigate
  • D) Little or no association
  • E) A categorical variable is missing

Part e (1 point)

The points follow a straight rising line closely, except one point whose x is far beyond all the others; it sits well below where the line through the rest would reach.

  • A) Needs a transformation or non-linear term
  • B) Variance grows with the mean
  • C) High-leverage point to investigate
  • D) Little or no association
  • E) A categorical variable is missing

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