PRMIA Exam 8007 Topic 1 Question 11 Discussion

Actual exam question for PRMIA's Mathematical Foundations of Risk Measurement ? 2015 Edition exam

Question #: 11
Topic #: 1

Which of the following is not a direct cause of autocorrelation or heteroskedasticity in the residuals of a regression model?

AA structural break in the dependent variable

BA high positive correlation between two explanatory variables

CThe omission of a relevant explanatory variable

DUsing an inappropriate functional form in the model

Show Suggested Answer

Suggested Answer: B

by Tiera at May 09, 2022, 04:03 PM

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