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PRMIA 8007 Exam Syllabus Topics:

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

1. In a quadratic Taylor approximation, a function is approximated by:

A) a straight line
B) a parabola
C) a cubic polynomial
D) a constant

2. What is the indefinite integral of the function f(x) = ln(x), where ln(x) denotes the natural logarithmic function?

A) x ln(x) - x
B) 1/x
C) ln(x) - x
D) exp(x)

3. Let A be a square matrix and denote its determinant by x. Then the determinant of A transposed is:

A) x
B) x -1
C) -x
D) ln(x)

4. Let X be a random variable normally distributed with zero mean and let . Then the correlation between X and Y is:

A) positive
B) zero
C) negative
D) not defined

5. In statistical hypothesis tests, 'Type I error' refers to the situation in which...

A) The null hypothesis is rejected when in fact it should have been accepted
B) Both null hypothesis and alternative hypothesis are rejected
C) Both null hypothesis and alternative hypothesis are accepted
D) The null hypothesis is accepted when in fact it should have been rejected

Solutions: