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Examiner:
ACTSC 433 - WINTER 2009 (SECTION 1)
MID-TERM EXAM #1- FEBRUARY 32008
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NAME: _
Calculator
1hour
J ohnny S.H. Li
Question Maximum Mark
1 12
2 8
3 8
4 13
Total 41
1. In a study of survival times (X), you are given the followingdata values (measured in
years):
(a) Compute 35(50), the empirical estimate of 3(50). [2marks]
(b) Compute 8(50), the Nelson-Aalen estimate of 3(50).
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(d) Suppose that a data value of 90 is added to the original data set. How would your
answers to parts (a) and (b) change? (Increase, decrease, or remains unchanged?) Explain
briefly. [3marks]
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2. In a study of automobile insurance claims, you are given the followingtimes of claim(in
days) for 4policies:
Estimate f(150) using the followingkernels:
(a) A uniformkernel with bandwidth b =100. [4marks]
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(b) A gamma kernel with a =5. Note that if f is the probability density function for a
gamma distribution with parameters aand 8, then f(x) =(x/~~a(~)x/o for x >O.
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500
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Sketch the kernel density estimate of the density function, f(x), for 0< x < 600, on the
basis of the followingkernels:
(a) A triangular kernel with b =50. [4marks]
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Claim size (X) Number of claims
(0,1] 50
(1 ,2 ] a
(2 ,3 ] b
(3,4] 5
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You are also given that FlQo(1 .5) =O.6.2~.
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(b) Assuming a uniform distribution of observations within each interval, estimate the
following: [9marks]
(i) E(X 1\ 3) .
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