Actuarial Notes

CAS Exam MAS-II Spring 2019, Question 13

Study guide: Exam MAS-II

The following study was conducted to examine the effect of three treatments on wood strength.

There are five wood planks. Each is cut into three pieces, and one of the three treatments is randomly assigned to each piece. The change in wood strength is measured and graphed as follows, where each line represents the measurements of the strength of a single plank:

You are given the following observations from the graph:

I. Wood strength is not affected by treatment. II. Variation between planks is noticeable, suggesting a random effect associated with treatment for each plank. III. Variation between planks is noticeable, suggesting a random effect associated with the intercept for each plank.

Determine which of the preceding statements are true.

  • A) I only
  • B) II only
  • C) III only
  • D) I, II, and III
  • E) The correct answer is not given by (A), (B), (C), or (D)

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