SOA Exam SRM Sample Question 13
Study guide: Exam SRM
Determine which of the following statements is/are true for a simple linear relationship, y = \beta_0 + \beta_1 x + \varepsilon.
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I. If
\varepsilon = 0, the 95% confidence interval is equal to the 95% prediction interval. -
II. The prediction interval is always at least as wide as the confidence interval.
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III. The prediction interval quantifies the possible range for
E(y \mid x). -
A) I only
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B) II only
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C) III only
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D) I, II, and III
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E) The correct answer is not given by (A), (B), (C), or (D).
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