Preview Questions Actuary | Role Specific Skill

Question 1: In the UK, the Solvency II framework is implemented and monitored by which regulatory authority?

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The Bank of England

The Prudential Regulation Authority (PRA)

The Department for Business, Energy & Industrial Strategy (BEIS)

The Financial Conduct Authority (FCA)

Question 2: In the context of risk-adjusted return on capital (RAROC), what does it measure?

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The risk-adjusted profitability of capital allocated to a business unit

The return earned in excess of the risk-free rate

The total return of an investment portfolio

The correlation between different asset classes

Question 3: Which regression technique is most suitable for modeling the relationship between multiple predictor variables and a continuous response variable in actuarial modeling?

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Ridge Regression

Principal Component Regression

Poisson Regression

Logistic Regression

Question 4: In the context of risk assessment for life insurance, what does the term "mortality risk" refer to?

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The likelihood that policyholders will survive the policy term

The risk associated with investment returns

The likelihood that policyholders will die before the policy expires

The risk of fraud or misrepresentation in underwriting

Question 5: Which technique is most effective for identifying underlying patterns in high-dimensional insurance claim data?

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Principal Component Analysis (PCA)

Decision Trees

Logistic Regression

Linear Regression

Question 6: When analyzing the claim severity in property insurance, which statistical measure best represents the average claim amount?

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Variance

Mean

Median

Standard deviation