Society of Actuaries Advanced Short-Term
Actuarial Mathematics (ASTAM) Practice Test
Exam
1. What is the primary focus of the Society of Actuaries
Advanced Short-Term Actuarial Mathematics exam?
A. Advanced short-term actuarial mathematics
B. Surgical procedures
C. Hospital administration
D. Nursing education
Answer: A
Rationale: The SOA Advanced Short-Term Actuarial
Mathematics exam focuses on advanced short-term actuarial
mathematics.
2. What is the definition of a frequency distribution?
A. A distribution of the number of claims
B. A distribution of the amount of claims
C. A distribution of the cost of claims
D. A distribution of the time of claims
,Answer: A
Rationale: A frequency distribution is a distribution of the
number of claims.
3. What is the definition of a severity distribution?
A. A distribution of the amount of claims
B. A distribution of the number of claims
C. A distribution of the cost of claims
D. A distribution of the time of claims
Answer: A
Rationale: A severity distribution is a distribution of the amount
of claims.
4. What is the definition of a collective risk model?
A. A model for aggregate claims
B. A model for individual claims
C. A model for frequency only
D. A model for severity only
Answer: A
Rationale: A collective risk model models aggregate claims.
,5. What is the definition of an individual risk model?
A. A model for individual claims
B. A model for aggregate claims
C. A model for frequency only
D. A model for severity only
Answer: A
Rationale: An individual risk model models individual claims.
6. What is the difference between a collective risk model and an
individual risk model?
A. Collective models aggregate claims, individual models
individual claims
B. Collective models individual claims, individual models
aggregate claims
C. Both model aggregate claims
D. Both model individual claims
Answer: A
Rationale: Collective risk models aggregate claims, while
individual risk models model individual claims.
, 7. What is the definition of a compound distribution?
A. A distribution of aggregate claims
B. A distribution of individual claims
C. A distribution of frequency only
D. A distribution of severity only
Answer: A
Rationale: A compound distribution is a distribution of
aggregate claims.
8. What is the definition of a compound Poisson distribution?
A. A compound distribution with Poisson frequency
B. A compound distribution with binomial frequency
C. A compound distribution with negative binomial frequency
D. A compound distribution with geometric frequency
Answer: A
Rationale: A compound Poisson distribution has Poisson
frequency.
9. What is the definition of a compound binomial distribution?
Actuarial Mathematics (ASTAM) Practice Test
Exam
1. What is the primary focus of the Society of Actuaries
Advanced Short-Term Actuarial Mathematics exam?
A. Advanced short-term actuarial mathematics
B. Surgical procedures
C. Hospital administration
D. Nursing education
Answer: A
Rationale: The SOA Advanced Short-Term Actuarial
Mathematics exam focuses on advanced short-term actuarial
mathematics.
2. What is the definition of a frequency distribution?
A. A distribution of the number of claims
B. A distribution of the amount of claims
C. A distribution of the cost of claims
D. A distribution of the time of claims
,Answer: A
Rationale: A frequency distribution is a distribution of the
number of claims.
3. What is the definition of a severity distribution?
A. A distribution of the amount of claims
B. A distribution of the number of claims
C. A distribution of the cost of claims
D. A distribution of the time of claims
Answer: A
Rationale: A severity distribution is a distribution of the amount
of claims.
4. What is the definition of a collective risk model?
A. A model for aggregate claims
B. A model for individual claims
C. A model for frequency only
D. A model for severity only
Answer: A
Rationale: A collective risk model models aggregate claims.
,5. What is the definition of an individual risk model?
A. A model for individual claims
B. A model for aggregate claims
C. A model for frequency only
D. A model for severity only
Answer: A
Rationale: An individual risk model models individual claims.
6. What is the difference between a collective risk model and an
individual risk model?
A. Collective models aggregate claims, individual models
individual claims
B. Collective models individual claims, individual models
aggregate claims
C. Both model aggregate claims
D. Both model individual claims
Answer: A
Rationale: Collective risk models aggregate claims, while
individual risk models model individual claims.
, 7. What is the definition of a compound distribution?
A. A distribution of aggregate claims
B. A distribution of individual claims
C. A distribution of frequency only
D. A distribution of severity only
Answer: A
Rationale: A compound distribution is a distribution of
aggregate claims.
8. What is the definition of a compound Poisson distribution?
A. A compound distribution with Poisson frequency
B. A compound distribution with binomial frequency
C. A compound distribution with negative binomial frequency
D. A compound distribution with geometric frequency
Answer: A
Rationale: A compound Poisson distribution has Poisson
frequency.
9. What is the definition of a compound binomial distribution?
