Exam MAS-II Practice Question 6
Study guide: Exam MAS-II
Three linear mixed models for policyholder loss ratios are fitted by maximum likelihood to the same 400 observations. The summary output reports:
| Model | Parameters estimated | -2 \times log-likelihood |
|---|---|---|
| M1 | 4 | 2,010.0 |
| M2 | 6 | 1,996.0 |
| M3 | 9 | 1,984.0 |
Determine which model AIC selects and which model BIC selects.
- A) AIC selects M3; BIC selects M2
- B) AIC selects M2; BIC selects M1
- C) AIC selects M3; BIC selects M3
- D) AIC selects M2; BIC selects M2
- E) AIC selects M1; BIC selects M1
Answer this question and see the worked solution