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SOA Exam SRM - ASM Learning Flashcards

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85 views26 pages

SOA Exam SRM - ASM Learning Flashcards

Uploaded by

mutiep.873
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Actuarial Study Materials

Learning Made Easier

Flashcards for SOA Exam SRM


2nd Edition

©Copyright 2020 by Actuarial Study Materials (A.S.M.),


PO Box 69, Greenland, NH 03840. All rights reserved.
Reproduction in whole or in part without express written
permission from the publisher is strictly prohibited.
Introductory Note for ASM Flashcards for
Exam SRM
These flashcards will help you remember important formulas and con-
cepts for Exam SRM. This introduction discusses the features of the cards.
On the back of each card, the left header states the broad topic for the
card’s content.
The left footer provides a cross-reference to the lesson number, page
number, and table or formula number where applicable, of the second
edition of the ASM SRM manual.
On both the front and the back of each card, the right header indicates
the importance of the card. The rating system is given in Table 1.
These flashcards are based on the ASM SRM manual 2nd edition. The
pagination of the 1st edition (both printings) is different, but the lessons
and formula numbers are the same.
While flashcards are a useful study aid, they do not replace working
out tons of exercises. Flashcards are limited to formulas or concepts that
can be expressed briefly on a card. The number of flashcards for a topic
i
depends on the number of formulas for that topic, but is not necessarily a
measure of the importance of a topic.
If you find any errors in these cards, check the errata list at
errata.aceyourexams.net

If the error is not listed there, please send them to the publisher at
[email protected]
or send them to me directly at
[email protected]

When you send errata in, identify this publication as “SRM Flashcards, 2nd
edition”.

ii
Table 1: Rating system

Exam SRM is fairly new, so ratings are somewhat speculative.


88888 Essential—appears repeatedly on every exam
8888 Important—appears on every exam
888 Average importance—regularly appears on exams
88 Not so important—appears occasionally on exams, or
easy to derive as needed
8 Obscure—on syllabus, but unlikely to appear on exam.
No released exam uses this formula or concept, and stu-
dents have never reported a question from an unreleased
exam requiring this formula or concept.

iii
888

Three types of variables

1F
Statistical Learning 888

1. Continuous
2. Categorical
3. Count

Lesson 1, page 3 1B
88

Box-Cox transformation

2F
Statistical Learning 88



Y − 1

λ
λ,0
Y∗ 

λ
 ln Y
 λ0

Lesson 1, page 14, formula (2.6) 2B


888

Homoscedasticity

3F
Linear Regression 888

The variance of error term of a linear regression is the


same.

Lesson 2 3B
888

Formula for β̂ 0 and β̂ 1 of linear regression

4F
Linear Regression 888

Í
(x i − x̄)(y i − ȳ)
β̂ 1  Í (2.1)
(x i − x̄)2
β̂ 0  ȳ − β̂ 1 x̄ (2.2)

Lesson 2, page 9 4B
88

Formula for β̂ 1 of linear regression in terms of


variance and covariance

5F
Linear Regression 88

cv x y
β̂ 1 
s x2

Lesson 2, page 10 5B
888

Formula for β̂ 1 of linear regression in terms of


correlation

6F
Linear Regression 888

sy
β̂ 1  r x y
sx

Lesson 2, page 10, formula (2.3) 6B


88

Formula for β̂ in multiple regression

7F
Linear Regression 88

β̂  (X0X)−1 X0y

Lesson 2, page 12, formula (2.4) 7B


88

Formula for β̂ in weighted least squares

8F
Linear Regression 88

∗
β̂  (X0WX)−1 X0Wy

Lesson 2, page 13, formula (2.5) 8B


888

Residual sum of squares

9F
Linear Regression 888

Õ
n
Error SS  (y i − ŷ i )2
i1

Lesson 3 9B
888

Total sum of squares

10F
Linear Regression 888

Õ
n Õ
n
Total SS  (y i − ȳ)2  y i2 − n ȳ 2
i1 i1

Lesson 3 10B

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