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PRMIA 8007 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Statistics and Regression Analysis | 20% | - Descriptive statistics
|
| Topic 2: Probability Theory | 25% | - Basic probability concepts
|
| Topic 3: Calculus and Functions | 20% | - Single-variable calculus
|
| Topic 4: Linear Algebra and Matrix Theory | 20% | - Matrix operations
|
| Topic 5: Numerical Methods & Financial Mathematics | 15% | - Root finding and approximation - Basics of risk modeling - Time value of money |
PRMIA Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition Sample Questions:
Question 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
Question 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
Question 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
Question 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
Question 5
Which of the following properties is exhibited by multiplication, but not by addition?
A. commutativity
B. distributivity
C. associativity
D. invertibility
Solutions:
| Question 1 Answer: B | Question 2 Answer: D | Question 3 Answer: B | Question 4 Answer: C | Question 5 Answer: B |
