SOA Exam SRM Sample Question 33
Study guide: Exam SRM
The regression tree shown below was produced from a dataset of auto claim payments. Age Category (agecat: 1, 2, 3, 4, 5, 6) and Vehicle Age (veh_age: 1, 2, 3, 4, ...) are both predictor variables, and log of claim amount (LCA) is the dependent variable.
Consider three autos I, II, III:
I: An Auto in Age Category 1 and Vehicle Age 4
II: An Auto in Age Category 5 and Vehicle Age 5
III: An Auto in Age Category 5 and Vehicle Age 3
Rank the estimated LCA of Autos I, II, and III.
- A) LCA(I) < LCA(II) < LCA(III)
- B) LCA(I) < LCA(III) < LCA(II)
- C) LCA(II) < LCA(I) < LCA(III)
- D) LCA(II) < LCA(III) < LCA(I)
- E) LCA(III) < LCA(II) < LCA(I)
Answer this question and see the worked solution