8002 PRMIA Exam Lab Questions

PRM Certification - Exam II: Mathematical Foundations of Risk Measurement Questions and Answers

Question 5

In a quadratic Taylor approximation, a function is approximated by:

a constant

a straight line

a parabola

a cubic polynomial

Question 6

What is the sum of the first 20 terms of this sequence: 3, 5, 9, 17, 33, 65,…?

1 048 574

1 048 595

2 097 170

2 097 172

Question 7

The sum of the infinite series 1+1/2+1/3+1/4+1/5+.... equals:

Infinity

128

Question 8

Which of the following is not a direct cause of autocorrelation or heteroskedasticity in the residuals of a regression model?

A structural break in the dependent variable

A high positive correlation between two explanatory variables

The omission of a relevant explanatory variable

Using an inappropriate functional form in the model