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PRMIA PRM Certification - Exam II: Mathematical Foundations of Risk Measurement 8002 Question # 39 Topic 4 Discussion

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PRMIA PRM Certification - Exam II: Mathematical Foundations of Risk Measurement 8002 Question # 39 Topic 4 Discussion

8002 Exam Topic 4 Question 39 Discussion:
Question #: 39
Topic #: 4

You want to test the hypothesis that a population parameter β of a regression model is zero. Your alternative hypothesis is that β≠0. Denote by SD(β) the estimated standard deviation of β, and by MEAN(β) the estimated mean of β. Which test statistic is appropriate, and what is its distribution?
A.

test statistic = SD(β)/MEAN(β), normal distribution

B.

test statistic = MEAN(β)/SD(β), normal distribution

C.

test statistic = SD(β)/MEAN(β), t distribution

D.

test statistic = MEAN(β)/SD(β), t distribution

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Actual exam question for PRMIA 8002 exam by Lyric37387 at Aug 2, 2025, 12:00:00 AM

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