SOA Exam SRM Sample Question 72
Study guide: Exam SRM
An actuary is investigating the probability of a policyholder incurring positive medical expenditures. Using a sample of data from the company's claims files, a logistic regression model is fit and produces the following table of estimates:
| Predictor Variable | Coefficient Estimate | Standard error | p-value |
|---|---|---|---|
| Age | 0.257 | 0.102 | 0.0117 |
| Sex | –0.955 | 0.542 | 0.0781 |
| Education | 0.103 | 0.069 | 0.1355 |
| Log(Income) | –0.516 | 0.157 | 0.0010 |
Determine which of the following predictor variables are significant, using a 5% level of significance.
- A) Log(Income) only
- B) Education only
- C) Age and Log(Income) only
- D) Sex and Education only
- E) All four are significant
Answer this question and see the worked solution