Actuarial Notes

CAS Exam MAS-II Spring 2019, Question 22

Study guide: Exam MAS-II

Data are collected on 10 players on a baseball team. For each individual player, i, let the number of hits be denoted as hits_i and the number of at-bats be denoted n_i. The batting average is the ratio of hits to at-bats (hits_i/n_i).

The following three models are proposed:

Model X

\begin{align*}
hits_i &\sim \text{Binomial}(n_i, p_i) \\
\text{logit}(p_i) &= \alpha_i \\
\alpha_i &\sim \text{Normal}(0, 25)
\end{align*}

Model Y

\begin{align*}
hits_i &\sim \text{Binomial}(n_i, p_i) \\
\text{logit}(p_i) &= \alpha_i \\
\alpha_i &\sim \text{Normal}(\alpha, \sigma^2) \\
\alpha &\sim \text{Normal}(0, 1) \\
\sigma &\sim \text{HalfCauchy}(0, 1)
\end{align*}

Model Z

\begin{align*}
hits_i &\sim \text{Binomial}(n_i, p_i) \\
\text{logit}(p_i) &= \alpha \\
\alpha &\sim \text{Normal}(0, 25)
\end{align*}

The models are fit and the posterior means of batting average for each player are plotted below:

Determine which of the following are true.

  • A) Model X produced Output 1, Model Y produced Output 2, and Model Z produced Output 3.
  • B) Model X produced Output 2, Model Y produced Output 1, and Model Z produced Output 3.
  • C) Model X produced Output 1, Model Y produced Output 3, and Model Z produced Output 2.
  • D) Model X produced Output 3, Model Y produced Output 1, and Model Z produced Output 2.
  • E) None of the above statements are true.

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