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PRMIA Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition 8007 Question # 20 Topic 3 Discussion

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PRMIA Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition 8007 Question # 20 Topic 3 Discussion

8007 Exam Topic 3 Question 20 Discussion:
Question #: 20
Topic #: 3

You are to perform a simple linear regression using the dependent variable Y and the independent variable X (Y = a + bX). Suppose that cov(X,Y)=10, var(X)= 5, and that the mean of X is 1 and the mean of Y is 2. What are the values for the regression parameters a and b?
A.

b=0.5, a=2.5

B.

b=0.5, a=1.5

C.

b=2, a=4

D.

b=2, a=0

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Actual exam question for PRMIA 8007 exam by Zane95000 at Aug 3, 2025, 12:00:00 AM

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