CAS Exam MAS-II Spring 2019, Question 16
Study guide: Exam MAS-II
Your company implements a new marketing strategy for agents. It is implemented under the direction of two marketing directors who each lead the agents in two different states. You build a Linear Mixed Model to model the policy growth over the next year after this new strategy is implemented. Below is the model output from this Linear Mixed Model.
Solution for Fixed Effects
| Effect | Location | Estimate | Standard Error |
|---|---|---|---|
| Intercept | 86.75 | 61.39 | |
| Location | Rural | -272.71 | 63.82 |
| Location | Town | -179.56 | 47.62 |
| Location | City | 0.00 | 0.00 |
| Tenure | -14.66 | 2.88 | |
| Beginning Policies | 0.33 | 0.07 |
Solution for Random Effects
| Effect | Director | State | Estimate | Standard Error Prediction |
|---|---|---|---|---|
| Intercept | D1 | -21.66 | 32.39 | |
| Intercept | D1 | S1 | 5.85 | 15.94 |
| Intercept | D1 | S2 | 1.89 | 15.93 |
| Intercept | D2 | 21.66 | 32.39 | |
| Intercept | D2 | S3 | -3.13 | 15.93 |
| Intercept | D2 | S4 | 7.10 | 15.92 |
Consider an agent with the following characteristics:
| Location | Tenure | Beginning Policies | Director | State |
|---|---|---|---|---|
| Town | 2 | 921 | D1 | S2 |
Calculate the expected policy growth for this agent over this time period according to this Linear Mixed Model.
- A) Less than 140
- B) At least 140 but less than 150
- C) At least 150 but less than 160
- D) At least 160 but less than 170
- E) At least 170
Answer this question and see the worked solution
Concepts tested
- Linear Mixed Model
- Random Effects
- Fixed Effects
- Hierarchical Model
- Nested and Crossed Factors
- Model Output