IAI Actuarial Core Principles · Actuarial Statistics · Purpose and function of data analysis
In the data analysis process, which stage normally comes immediately after the aims of the analysis have been defined and before any model is fitted?
After defining the aims, the next stage is collecting, checking and cleaning the data. Modelling can only begin once the data is fit for use. Communicating results, monitoring and reviewing the model all follow later in the process.
- ACollecting, checking and cleaning the dataCorrect
- BCommunicating the final results to stakeholders
- CMonitoring the model after implementation
- DSetting the final reserve to be held
- Reviewing the model against new experience
Explanation
The usual process is to define the aims, collect, check and clean the data, explore it, analyse or model it, and finally communicate the results and monitor them. Communication, monitoring and review come after modelling.
Did you get it right without looking?
One question tells you little. A timed set on Purpose and function of data analysis shows your real accuracy, how long you take and where you lose marks.
More Purpose and function of data analysis questions
- A health insurer fits a regression of claim cost (₹ thousand) on age: cost = 4.0 + 0.5 × age, using policyholders aged 25 to 60. It uses the…
- A pension fund analyst reports that members who attended financial education sessions have higher savings than those who did not, and conclu…
- Which of the following best distinguishes inferential analysis from predictive analysis in an actuarial setting?
- In the data analysis process followed in actuarial work, which of the following best describes the purpose of the first stage, before any da…
- A pension fund analyst finds that, in a dataset of 2,000 members, the average salary rise is higher for members who attended a training prog…
- An actuary at a Chennai health insurer is reviewing a claims dataset. Which of the following best describes a reason to carry out explorator…