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

1. Let a, b and c be real numbers. Which of the following statements is true?

A) The associativity of multiplication is defined by
B) The distributivity of multiplication is defined by
C) The commutativity of multiplication is defined by
D) The existence of negatives is defined by

2. Solve the simultaneous linear equations: x + 2y - 2 = 0 and y - 3x = 8

A) None of the above
B) x = 2, y = 0
C) x = 1, y = 0.5
D) x = -2, y = 2

3. A biased coin has a probability of getting heads equal to 0.3. If the coin is tossed 4 times, what is the probability of getting heads at least two times?

A) 0.2646
B) 0.3483
C) None of these
D) 0.7367

4. In a multiple linear regression, the significance of R2 can be tested using which distribution?

A) Binomial distribution
B) Normal distribution
C) F-distribution
D) Student's t distribution

5. Which of the following properties is exhibited by multiplication, but not by addition?

A) commutativity
B) distributivity
C) associativity
D) invertibility

Solutions: