Actuarial Notes

Exam MAS-I Practice Question 168

Study guide: Exam MAS-I

Two Poisson GLMs are fitted to claim counts:

  • Model 1: intercept, territory (4 levels) and vehicle age (continuous). Residual deviance 1,284.6.
  • Model 2: everything in Model 1, plus vehicle use (3 levels) and the territory × vehicle use interaction. Residual deviance 1,265.8.

Both models use the Poisson dispersion \phi = 1. Use this excerpt of the chi-squared table, which gives the value c with P(\chi^2_{df} \le c) = p:

df p = 0.950 p = 0.975 p = 0.990 p = 0.995
2 5.991 7.378 9.210 10.597
3 7.815 9.348 11.345 12.838
4 9.488 11.143 13.277 14.860
5 11.070 12.833 15.086 16.750
6 12.592 14.449 16.812 18.548
7 14.067 16.013 18.475 20.278
8 15.507 17.535 20.090 21.955
9 16.919 19.023 21.666 23.589
10 18.307 20.483 23.209 25.188
12 21.026 23.337 26.217 28.300
15 24.996 27.488 30.578 32.801

Determine the range that contains the p-value of the likelihood ratio test of Model 1 against Model 2.

  • A) Less than 0.005
  • B) At least 0.005, but less than 0.010
  • C) At least 0.010, but less than 0.025
  • D) At least 0.025, but less than 0.050
  • E) At least 0.050

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