Actuarial Notes

Exam MAS-II Practice Question 11

Study guide: Exam MAS-II

A regression tree is grown to predict claim severity Y (in thousands) from vehicle age X. The six training observations are:

X 1 2 3 4 5 6
Y 4 6 5 11 13 12

The first split is chosen by recursive binary splitting among the cutpoints X < 3, X < 4 and X < 5.

Determine the cutpoint chosen and the total residual sum of squares (RSS) of the resulting two regions.

  • A) X < 4, with total RSS 4.00
  • B) X < 4, with total RSS 2.00
  • C) X < 5, with total RSS 29.50
  • D) X < 3, with total RSS 40.75
  • E) X < 5, with total RSS 0.50

Answer this question and see the worked solution

Concepts tested

More questions from this set