**BEGINNING OF EXAMINATION**
COURSE/EXAM 4: MAY 2000
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1.
You fit the following model to 20 observations:
Y
X
=
+
+
a b e
You determine that
R
2
0 64
=
.
.
Calculate the value of the
F
statistic used to test for a linear relationship.
(A)
Less than 30
(B)
At least 30, but less than 33
(C)
At least 33, but less than 36
(D)
At least 36, but less than 39
(E)
At least 39

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2.
You are given the following random sample of ten claims:
46
121
493
738
775
1078
1452
2054
2199
3207
Determine the smoothed empirical estimate of the 90
th
percentile, as defined in Klugman, Panjer
and Willmot.
(A)
Less than 2150
(B)
At least 2150, but less than 2500
(C)
At least 2500, but less than 2850
(D)
At least 2850, but less than 3200
(E)
At least 3200

COURSE/EXAM 4: MAY 2000
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3.
You are given the following information about two classes of business, where
X
is the loss for an
individual insured:
Class 1
Class 2
Number of insureds
25
50
E X
b g
380
23
E X
2
c h
365,000
----
You are also given that an analysis has resulted in a Bühlmann
k
value of 2.65.
Calculate the process variance for Class 2.
(A)
2,280
(B)
2,810
(C)
7,280
(D)
28,320
(E)
75,050

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