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Can I use Excel to help construct my answers? Updated 07 April 2020 It is important that you upload your examination scripts in Microsoft Word...

I think your CS1 pass should get you admitted as a student member. Do apply and wait for their response. I wish you best wishes on your journey to...

A word of caution... This alternate route is only if you want to stop after attaining associateship. If you want to continue with exams and...

Jay It is a good question. Not many people actually ask such questions!! The reason you are squaring O - E is to do with getting a test...

Thanks. Yes, I do understand Solvency II balance sheet is for solvency purposes whilst a potential investor will be more looking at the...

Thanks, mugono. Whatever you said makes sense. But I think I still haven't got the answer to my real question. Under Solvency II, we know...

Can anyone from ActEd respond?

Thanks. I don't know but something doesn't feel right. Why should VIF be zero? I would have thought VIF = - BEL! On a separate note, I didn't...

This is incorrect. The t-distribution cannot be used for deriving the confidence interval for \(\rho\). The Normal test using the Fisher's...

Read page 11 of chapter 13 of the ActEd notes. Two points to remember: 1. The t-test statistic only holds under \(\rho =0\). In other words,...

You still don't get it...

You clearly didn't get it. Sorry pal :-)

What do you reckon the ideal pass rate should be? I will give you something as food for thought ... For CFA, average pass rate for the last...

No, the same house was not insured by two insurers! Look at question 11.16 as well.

Yes, that's correct...

Apply L'Hôpital's rule to the form of MSE derived in part (iii) a. This will give the limit in a simplified form.

On a second thought, there is something similar within the course as well. When you compute maximum likelihood estimate of a parameter starting...

This method is not unique to this course. This is about computing max of a continuous function of a single variable where differentiating the...

Check the question again. You are asked to compute mode and not mean in part (a). Taking log and differentiating helps to compute mode with...

Set: c x^2 = y and substitute in the integrand. You should get the correct answer

Does this help? Or, are you looking for something else?

You can't plug in lambda = mu in the result which you have obtained assuming they are not equal (see the first line of the solution). Rather plug...

Not sure how you set the H0 and H1 values. I think you can use the chi-square test using 2-way contingency table

6.23: Look at the pdf of Gamma given in the tables. Plug in alpha = 3 and see if you are getting the pdf as mentioned in the solution 6.24:...

The Institute has published details of exemption arrangement. You can access that here.

I don't have the exact question. For computing joint probability, I agree you need double integration.

Wont you want to do double integration from 0 to 1 for both variables??

Sorry .. I meant can you show your workings like how far have you managed to work out the answers. It is not expected that someone here will...

Can you tell us where you are stuck?

If you use the formula in the tables, use h = 1 and s = 1/t. Also take out t^a outside the brackets.

I can guess what the issue is. This is one of the poorly constructed question. The question should have clearly stated if the base test is an...

In principle, you can always use the confidence interval approach to solve a hypothesis testing problem. But note, this is a one sided test...

Hi I am not sure what alternate formulas you are talking about. Can you state that alternate form (say) for the Poisson distribution?

Yes, to your first part. The question doesn't ask you to test at the 5% level. The solution uses 0.5% level for the testing. You can re-do...

Hi Can you be more specific as to what is not clear? Testing the gradient of the regression equation = 0 can be expressed as an ANOVA...

I suggest you read page 26 section 3 of chapter 14 - Analysis of variance.

In case you are not aware, IFoA provides a support service to its members. If you want, you can take advantage of this. There is no charge. Link:...

You are computing expectation of a function of a random variable X with pdf f(x): E[g(x)] = integrate{ g(x) * f(x) dx } Here g(x) = E(Y | X...

I believe your real issue is with computing variance. I have actually given you the base formula to make you understand how this works. I will...

Can you be bit more specific? Which part of my earlier response did you not get?

Gaurav I think you need to look at those sections. They work for any set of random variables including Normal. In general, Var(aX + bY) =...

I think it is worth you going back and revising the basics. Re-read sections 2.5 and 3.2 of that chapter.

I think you will notice from the tables that for d.f. 40, chi-square value at 0.025 tail probability is 59.34 and at 0.01 tail probability is...

It has to be in limit as you should not be merely replacing t with 0 in the denominator. This is the correct way to do things.

You need to compute lim Mx(t) as t -> 0. To get the limit, you need to use the L'Hôpital's rule. Once you do that, you will get the limit as 1.

So, patra, what do you suggest IAI should be doing? What is the way forward for IAI and the students?

Thanks, didn't realize that...

Oxymoron, Not to belittle the point you are making, I wonder how did you got access to this information (# appeared and # passed) before it is...

For CT3 (and for any other) I think you should try to complete the course early leaving enough time to practice solving questions. Usually you...

Did you write the India exam or the UK exam?

Consider one policy at a time. Say take j_th policy. Denote S_j as the amount claimed for that policy. You have expressions for E(S_j) and...

Yes, you are correct. 1/n has no significance in answering Q1.2 as we need to understand the sign of the answer and not the actual answer. If it...

For Q1.2, you are required to compute sample skewness. Read the question it gives you information about a data set. For Q1.5, you are dealing...

Skew(X)=E([Xi−μ]^3) is the population skewness. This is essentially the 3rd central moment (mu3) You can estimate the skewness from a sample...

My take is simple .. The question asks to simulate two values from the random variable X (which has a relationship with U in the given form)....

Not sure I completely agree with your interpretation of 'Hence'. Then again it does not matter to me.

I think you need not solve this way. Notice the word 'Hence' at the start of part (ii) in the question. I think what the examiners wanted is to...

Dvani Best way to get a feel for this is to look at the last 3-4 years question papers.

Yes

I think you meant Q10. Check this discussion. You can derive the likelihood of part (d) using similar logic as part (a).

Look up the tables. Page 175. Suggest you study the tables before the exam.

They are from the actuarial tables pages 168 and 169.

Dvani You are correct in stating that the question is confusing. It is one of the poorly drafted question I have ever seen. Here, your S is...

Again this question has nothing to do with Poisson-Bernoulli approximation. I suggest that you re-read the question and solution.

You are welcome ! Not sure I got the last part of your comment 'Poisson-Binomial approximation' ... this question has nothing to do with that !

Debjit In this scenario you are told that you do not know X1, X2 ... but only whether Xi = 0 or Xi > 0. Step 1: You define the new random...

Debjit Can you point out the step which is not clear?

It's worth looking at Q9 of IAI Nov 2012 paper. It is easier to adopt a similar approach for this one as well.

ANOVA table is a simple way to present your result which in turn helps you to draw conclusions. I would always have one !

Please refer to this related thread .. http://www.acted.co.uk/forums/showthread.php?t=3513

N is the random variable which counts the number of winning certificates out of 200 he has bought. S > 2040 i.e. 20 * N + 10 * (200 -...

It depends on the question. If you are given the value of mean then use it. If you are given value of mu you need to derive the value of mean....

If you add just 3 & 4+ the expected freq will still be < 5

Results are out !!

So, which part of your question you are yet to figure out?

Hi I think what you might have heard relates to new qualification category that is currently being planned by IFA. Check this link. This has 6...

Only point I would like to make here is to td290. Although the approach is correct, (being a purist) I would avoid writing P(X=x) or similar...

Hi Please check the source of your problem. X as a random variable can not represent both claim sizes as well as claim frequencies !! Also you...

Wonder what does everyone thinks of IFA CT3 paper from this year's April diet ......

Try this: http://www.acted.co.uk/forums/showthread.php?t=8067

Yes, you can. Try it. You should get the same answer in the end.

Remember: A N(100,10) distribution => variance = 10 2nd part: You are confusing between a population result with a sample result. This is a...

yes

A random variable which takes only one value is referred to as a constant random variable or degenerate random variable. You can read this wiki...

I have a feeling you are trying to memorise the formula which is not a bad thing provided you understand what is going on. I would recommend...

Yes, you can as long as you are sure what you mean. what you see is only a definition

This is useful: http://www.youtube.com/watch?v=Tagd0ixJUFI

Read this post: http://www.acted.co.uk/forums/showthread.php?t=8027

Yes, you can. It can get complex and you will have to watch your steps. I always use the simple trick (as below) which always works if you have...

Hi Here X is the random variable and not theta. NB: E[g(X)]=int[g(x)*f(x)]dx over 0 to inf You could have taken L(x) = prod over n terms. Note...

It is due to rounding of numbers in intermediate steps . Your approach is correct.

Alex You can not use your approach as you can consider the distributions of N and X are independent only when you take them conditional on theta....

Please show your steps so that I can see where you are stuck.

You need to compute: P(X >= -2) This equals P(X > -2.5). Note this includes -2 within the range. If you say this equals P(X > 1.5), this does...

Not sure. Have you checked your on-line account?

They are available on-line. You need to log-in to your account on the Institute's website. You will no longer receive hard-copies.

X ~ Bin(n, p). So, E(p_hat) = np/n = p & Var(p_hat)=np(1-p)/n^2=p(1-p)/n Invoking CLT, p_hat approx ~ N(p, p(1-p)/n)

Same one I mentioned in my earlier reply. Except that with the data given, we will not have sufficient evidence to reject Ho: mu = 100

Hi It is a good question ! Remember when you are performing a hypothesis testing, you are only checking if your data is giving you sufficient...