Preview Questions Actuary | Role Specific Skill

Question 1: Which of the following is an example of a dynamic financial forecasting model used in actuarial science?

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Deterministic models with no assumptions about economic change

Single period cash flow models

Multi-period models that adapt to changing economic conditions

Fixed-rate cash flow models

Question 2: Which statistical method is most appropriate for estimating the tail risk in insurance portfolios?

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Simple Linear Regression

Poisson Regression

Gaussian Distribution

Extreme Value Theory (EVT)

Question 3: What does the term "funded ratio" in a pension plan indicate?

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The ratio of plan assets to present value of future obligations

The percentage of current assets relative to current liabilities

The cost of future pension benefits relative to contributions

The long-term solvency of a plan

Question 4: In pension plan funding, what is a "minimum funding requirement" (MFR)?

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The minimum salary increase rate required to fund future benefits

The least amount of contribution an employer must make to maintain the pension plan's solvency

The minimum age at which employees are eligible for pension benefits

The minimum investment return expected by the pension fund

Question 5: In analyzing a longitudinal study of policyholders, which type of model would you use to account for time-varying covariates?

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Cox regression model

Linear regression model

Fixed-effects regression model

Random-effects regression model

Question 6: How do actuaries typically address model risk in financial forecasting?

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By validating models using out-of-sample data

By increasing the confidence level of forecasts

By ignoring outliers in the data

By simplifying the model structure