PRMIA Mathematical Foundations of Risk Measurement :II P R M ™ Exam Practice Test

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Total 132 questions

Question 1

You are investigating the relationship between weather and stock market performance. To do this, you pick 100 stock market locations all over the world. For each location, you collect yesterday's mean temperature and humidity and yesterday's local index return. Performing a regression analysis on this data is an example of...



Answer : D

Question 2

Simple linear regression involves one dependent variable, one independent variable and one error variable. In contrast, multiple linear regression uses...



Answer : A

Question 3

You want to test the hypothesis that a population parameter of a regression model is zero. Your alternative hypothesis is that 0. Denote by SD() the estimated standard deviation of , and by MEAN() the estimated mean of . Which test statistic is appropriate, and what is its distribution?



Answer : D

Question 4

In a multiple linear regression, the significance of R2 can be tested using which distribution?



Answer : C

Question 5

Exploring a regression model for values of the independent variable that have not been observed is most accurately described as...



Answer : D

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Total 132 questions