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PRMIA 8007 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Statistics and Regression Analysis | 20% | - Descriptive statistics
|
| Probability Theory | 25% | - Basic probability concepts
|
| Numerical Methods & Financial Mathematics | 15% | - Root finding and approximation - Basics of risk modeling - Time value of money |
| Linear Algebra and Matrix Theory | 20% | - Matrix operations
|
| Calculus and Functions | 20% | - Multivariable calculus
|
PRMIA Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition Sample Questions:
Question 1
What is the simplest form of this expression: log2(165/2)
A. log2 (5/2) + log2(16)
B. 10
C. 5/2 + log2(16)
D. 32
Question 2
Let A be a square matrix and denote its determinant by x. Then the determinant of A transposed is:
A. x
B. -x
C. ln(x)
D. x -1
Question 3
The sum of the infinite series 1+1/2+1/3+1/4+1/5+.... equals:
A. 20
B. 128
C. Infinity
D. 12
Question 4
In a quadratic Taylor approximation, a function is approximated by:
A. a straight line
B. a cubic polynomial
C. a parabola
D. a constant
Question 5
A linear regression gives the following output:
Figures in square brackets are estimated standard errors of the coefficient estimates.
Which of the following is an approximate 95% confidence interval for the true value of the coefficient of ?
A. [0, 1.5]
B. None of the above
C. [1, 2]
D. [0, 3]
Solutions:
| Question 1 Answer: B | Question 2 Answer: A | Question 3 Answer: C | Question 4 Answer: C | Question 5 Answer: D |
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