Actuarial Notes

CAS Exam MAS-II Fall 2019, Question 8

Study guide: Exam MAS-II

You are given the following statements are true regarding the variance-covariance \mathbf{D} matrix relating the random effects in a Linear Mixed Model:

I. The matrix is always symmetrical. II. All elements of the matrix must be non-negative. III. Under the compound symmetry structure, all the elements along the diagonal of the matrix are equal.

Determine which of the above statements are true.

  • A) None of I, II, or III is true
  • B) I and II only
  • C) I and III only
  • D) II and III only
  • E) The answer is not given by (A), (B), (C), or (D)

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