Actuarial Notes

Exam MAS-I Practice Question 156

Study guide: Exam MAS-I

A quasi-Poisson claim-frequency model is being extended with a vehicle-use variable that has 4 levels. The fits are:

Model Residual deviance Residual df Pearson X^2
Without vehicle use 1,962.4 803 1,905
With vehicle use 1,940.2 800 1,880

The dispersion parameter is estimated as Pearson's X^2 divided by the residual degrees of freedom of the larger model.

Calculate the F statistic for testing whether vehicle use belongs in the model. Give your answer to two decimal places.

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