Least squares method - Study guides, Class notes & Summaries

Question You work with the pricing actuary at Cash for Claims, a large Property/Casualty insurer. The CEO has some questions based on the most recent pricing analysis and the pricing actuary has asked you to assist with the response. The proposed rates were not in the range the CEO expected given the pricing analysis. The CEO has asked the pricing actuary to verify the total projected loss cost excluding potential large storm losses for 2020. In turn, the pricing actuary has asked you to i...

Asymptote a horizontal, vertical, or slanted line that a graph approaches but never touches coefficient of determination A statistic that measures how well a regression prediction approximates the real data points. An r^2 of 1 indicates that the regression prediction is a perfect fit for the data common ratio The number by which each term in a sequence is multiplied to find the next number in the sequence; for example 4 is the common ratio for the sequence [1, 4, 16, 64, 256...]...

cost behavior - ANSWERSthe general term for describing whether and how a cost changes when the level of output changes cost driver - ANSWERSis a casual factor that measures the output of the activity that leads (or causes) costs to change relevant range - ANSWERSis the range of output over which the assumed cost relationship is valid for the normal operations of a firm fixed costs - ANSWERSare costs that in total are constant within the relevant range as the next level of output increas...

Which of the following is NOT an example of a time series model? A. Moving Average B. Exponential Smoothing C. Exponential Smoothing with Trend D. None of the above D. None of the Above If the demand is 100 during October 2016, 250 in November 2016, 350 in December 2016, 510 in January 2017. What is the 3-month simple moving average for February 2017? A. 550 B. 370 C. 200 D. Need more information B. 370 Smoothing parameter (alpha) close to 1 gives more weight or influence to recent observation...

Using MLE, can we derive estimated coefficients/parameters in exact form? - No, they are approximate estimated parameters T/F: The sampling distribution of the predicted response variable used in statistical inference is normal in multiple linear regression under the normality assumption. - F Classification - The prediction of binary responses. Classification is nothing more than a prediction of the class of your response, y* (y star), given the predictor variable, x* (x star). If the predi...

Test Bank for Introduction to Probability and Statistics 15e 15th Edition by William Mendenhall, Robert J. Beaver/Barbara M. Beaver. Full Chapters test bank included Chapter 1: Describing Data with Graphs 1.1 Variables and Data Types of Variables Exercises 1.2 Graphs for Categorical Data Exercises 1.3 Graphs for Quantitative Data Pie Charts and Bar Charts Line Charts Dotplots Stem and Leaf Plots Interpreting Graphs with a Critical Eye Exercises 1.4 Relative Frequency Histograms ...

A researcher wants to know if there was a relationship between student age and desire to complete a college degree. To answer this question, the researcher used a local community college as the sampling frame and then used stratified sampling to get a sample of students from 18 to 80 years old. Based on the information given, is there any potential bias in this study? a Yes, because the sampling frame does not match the intended population of the question. b Yes, because the sampling method ...

Chapter 3 - Cost Behavior 1. A cost that changes in total as output changes is a variable cost. ANSWER: True 2. The cost of raw materials used is usually a fixed a. b. 5. As output increases variable cost per unit will also increase. ANSWER: 6. The cost of advertising is usually a discretionary fixed cost. ANSWER: ANSWER: True a. b. True False cost. True False ANSWER: False RATIONALE: The cost of raw materials used is usually a variable cost. 3. Fixed costs are costs that in tot...

In logistic regression, we model the__________________, not the response variable, given the predicting variables. - Answer-probability of a success g link function - Answer-link the probability of success to the predicting variables 3 assumptions of the logistic regression model - Answer-Linearity, Independence, Logit link function Linearity assumption for a Logistic Model - Answer-Similar to the regression model we have learned in the previous lectures, the relationship we assume now, bet...

Az ROC Trade Exam B-3 License Correctly Solved Already Passed A+ Nails used for installing Hardboard panel siding vertically must accommodate the sheathing and penetrate the framing a minimum of how much? *ANS* 1-1/2 inches When framing openings in floors with a header and trimmer joists, what maximum header joist span is allowed with a single member header? *ANS* 4 feet Above the handrail and below the head, what is the minimum clear opening on a stairwell? *ANS* 36 inches When inst...