Preview Questions Actuary | Role Specific Skill

Question 1: How does "Discount Rate" affect the calculation of pension liabilities, and what challenges arise in choosing an appropriate discount rate for long-term pension projections?

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Discount rates are not used in pension liability calculations

The discount rate affects the present value of future pension obligations, with challenges arising from market volatility and long-term interest rate trends

Discount rates are irrelevant as pension liabilities are based on the future benefits, not market conditions

Discount rates should always be based on current market rates and do not need adjustments

Question 2: What is the purpose of using the Copula model in actuarial risk modeling?

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To estimate the tail value of loss distributions

To model the dependencies between multiple risk factors

To adjust for inflation in risk calculations

To predict the future distribution of risk

Question 3: Which financial statement does the actuarial valuation of pension liabilities most directly impact?

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Statement of changes in equity

Cash flow statement

Balance sheet

Income statement

Question 4: In actuarial financial modeling, what is the purpose of a sensitivity analysis?

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To evaluate the impact of regulatory changes on financial statements

To assess how different values of an independent variable affect a particular dependent variable

To determine the optimal investment portfolio

To calculate the expected claims for different policyholders

Question 5: In survival analysis, what does the hazard function represent?

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The average time until an event occurs

The baseline risk of an event occurring regardless of time

The cumulative probability of an event occurring up to a specific time

The probability of an event occurring at a specific time, given survival until that time

Question 6: In actuarial models, how do you typically handle censored data?

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By discarding the censored observations

By performing non-parametric tests

By using maximum likelihood estimation (MLE)

By imputing missing values with mean values