Exam MAS-II Practice Question 8
Study guide: Exam MAS-II
An actuary needs the sampling variability of the median of a sample of 250 claim severities. No distribution is assumed. She draws B = 5 bootstrap samples (in practice B would be far larger), each of 250 claims drawn with replacement from the original sample, and computes the median of each:
1{,}020 \quad 980 \quad 1{,}050 \quad 1{,}000 \quad 950
Calculate the bootstrap estimate of the standard error of the sample median.
- A) 2.41
- B) 17.03
- C) 34.06
- D) 38.08
- E) 1,450.00
Answer this question and see the worked solution