Exam SRM Practice Question 3
Study guide: Exam SRM
An actuary models average claim severity (in thousands) on vehicle age (in years) using six training observations:
Vehicle age x |
1 | 2 | 4 | 5 | 7 | 9 |
|---|---|---|---|---|---|---|
Severity y |
8.0 | 7.2 | 6.1 | 5.0 | 4.4 | 2.9 |
The ordinary least squares line fitted to these data is \hat{y} = 8.4926 - 0.6199x.
Calculate the K-nearest neighbors regression prediction of severity for a vehicle aged 4.6 years, using K = 3 and Euclidean distance.
- A) 5.00
- B) 5.17
- C) 5.55
- D) 5.64
- E) 6.10
Answer this question and see the worked solution