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PRMIA Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition Sample Questions:

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


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


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


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


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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