PRMIA 8002 Actual Free Exam Questions & Community Discussion

Which of the following statements about variance and standard deviation are correct?
1.When calculated based on a sample of the population data, one has to correct for any bias in the result by using the number of degrees of freedom in the calculation
2.Variance is in square root units of the underlying data, whereas standard deviation is in units of the underlying data
3.When considering independent variables, variance is additive, while standard deviation is not

For the function f(x) =3x-x3 which of the following is true?

For a quadratic equation, which of the following is FALSE?

Assume that 40% of all financial organizations investigated by authorities turn out to be fraudulent.
What is the probability of randomly investigating 2 different organizations and finding that neither is fraudulent; and what is the probability of finding exactly one being fraudulent?

What is the maximum value of the function F(x, y)=x2+y2 in the domain defined by inequalities x 1, y -2, y-x 3 ?

You are given the following regressions of the first difference of the log of a commodity price on the lagged price and of the first difference of the log return on the lagged log return. Each regression is based on 100 data points and figures in square brackets denote the estimated standard errors of the coefficient estimates:
Which of the following hypotheses can be accepted based on these regressions at the 5% confidence level (corresponding to a critical value of the Dickey Fuller test statistic of - 2.89)?

The quarterly compounded rate of return is 6% per annum. What is the corresponding effective annual return?

You are to perform a simple linear regression using the dependent variable Y and the independent variable X (Y = a + bX). Suppose that cov(X,Y)=10, var(X)= 5, and that the mean of X is 1 and the mean of Y is 2. What are the values for the regression parameters a and b?

Which of the provided answers solves this system of equations?
2y - 3x = 3y +x
y2 + x2 = 68