CAS Exam MAS-II Spring 2019, Question 17
Study guide: Exam MAS-II
Frank, the frequentist, fits a model to claim frequency using frequentist methods. Bob, a Bayesian, fits a model to claim frequency using MCMC.
- Frank reports a 95% confidence interval for claim frequency of (1.45, 2.75).
- Bob reports a 95% percentile interval for claim frequency of (1.50, 2.40).
You are provided with the following three statements:
I. Frank's analysis indicates that claim frequency is between 1.45 and 2.75 with probability 95%. II. 95% of Bob's posterior sample is between 1.50 and 2.40. III. The value of the 96th percentile of Bob's posterior sample is not within Bob's interval.
Determine which of the statements above are true.
- A) I only
- B) II only
- C) III only
- D) I, II and III
- E) The answer is not given by (A), (B), (C), or (D)
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