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PRMIA Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition Sample Questions:
1. Suppose that f(x) and g(x,y) are functions. What is the partial derivative of f(g(x,y)) with respect to y?
A) f'(g(x,y))
B) f(dg/dy)
C) f'(g(x,y)) dg/dy
D) f(g(x,y)) dg/dy
2. At what point x does the function f(x) = x3 - 4x2 + 1 have a local minimum?
A) 2.66667
B) -0.666666667
C) 0
D) 2
3. A linear regression gives the following output:
Figures in square brackets are estimated standard errors of the coefficient estimates.
What is the value of the test statistic for the hypothesis that the coefficient of is less than 1?
A) 1.92
B) 0.64
C) 0.96
D) 0.32
4. 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) [1, 2]
C) None of the above
D) [0, 3]
5. Let N(.) denote the cumulative distribution function of the standard normal probability distribution, and N' its derivative. Which of the following is false?
A) N(x) 0 as x
B) N'(0) 0
C) N'(x) 0 as x
D) N(0) = 0.5
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: A |



