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PRMIA 8007 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Numerical Methods & Financial Mathematics | 15% | - Root finding and approximation - Basics of risk modeling - Time value of money |
| Probability Theory | 25% | - Basic probability concepts
|
| Calculus and Functions | 20% | - Multivariable calculus
|
| Statistics and Regression Analysis | 20% | - Descriptive statistics
|
| Linear Algebra and Matrix Theory | 20% | - Matrix operations
|
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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