LOMA 335 THE INSURANCE COMPANY
AND OPERATIONS MANAGEMENT
(MODULE 3) EXAM VERIFIED 100%
CORRECT
___________ bias refers to a consistent cognitive error resulting from the tendency to
interpret and report data in terms of the observer's own culture. - Answer-Cultural
___________ bias is a consistent error in research outcomes that arises when people
perform better because they know they're being studied. - Answer-Attention
_________ acceptance bias refers to a consistent cognitive error based on a tendency
for individuals to make socially acceptable statements even when they feel something
else. - Answer-Social
A _________ is an item or system that simulates something else. - Answer-model
__________ modeling is a form of modeling that uses the processing capabilities of IT
to perform millions of simulations at once. - Answer-Computational
Decision __________ are the simple-to-understand rules a decision maker uses to
evaluate decision alternatives. - Answer-criteria
Decision ___________ are practical limitations that affect the selection of decision
alternatives. - Answer-constraints
States of _________ are potential influences on the outcome of a decision that aren't
under a decision maker's control.
Ex: market conditions such as changing interest rates and new market entrants -
Answer-nature
____________ models are mathematical constructs for projecting unknown or future
outcomes using known results or data. - Answer-Forecasting
Forecasting models allow users to find approximate values to represent unknowns,
called ___________. - Answer-estimates
_________-series models estimate unknown future values based on known, historical
data. - Answer-Time
,_________-series data is information about a variable over successive periods. -
Answer-Time
The simplest time-series model is called the __________ time-series model, where a
forecaster uses the data value(s) for the most recent period as the forecast value(s) for
the next future period. - Answer-naive
________ time-series models are easy to use and can be useful for estimating values
that don't change much from period to period. - Answer-Naive
Another simple form of time-series model is the __________ average model, which
uses the arithmetic average of a series of values (the mean) from previous periods as
the forecast value for the next future period. - Answer-arithmetic
The __________ average model gives equal weight to all data periods, regardless of
the age of those periods.
Note: This means old data is equally as important as new data. - Answer-arithmetic
1) The ________ moving average model is closely related to the arithmetic average
model.
2) It also requires finding the mean data value, but it considers only a specified number,
n, of the most recent data values.
Note: Each time the model is used, the data value from the oldest period is eliminated
and the data value from the most recent period is included. This can more accurately
reflect changing conditions than can the arithmetic average model. - Answer-simple
The ________ moving average time-series model assigns relative weights to the data
values used in the forecast.
Note: Typically, more recent data are assigned a greater weight or importance than are
older data. As with the simple moving average model, when values from new data
periods become available, new data are added to the model and the oldest data are
removed. - Answer-weighted
1) A ________ model uses historical data and other relevant variables as a basis for
describing unknown future data points.
2) In effect, these models create _____________ using patterns. - Answer-1) casual
2) projections
___________ models generate projections with excellent accuracy if the relationships
between variables can be expressed in numerical terms. - Answer-Casual
, _____________ is a measure of whether, and how strongly, two values are related. -
Answer-Correlation
Values __________ when a change in one value is associated with a consistent and
equivalent change (positive or negative) in the other value. - Answer-correlate
True or False:
Correlation doesn't prove causation. - Answer-True
___________ modeling refers to a computer-based mathematical model that
approximates the operation of real-world financial processes. - Answer-Financial
Most financial models consist of: - Answer-inputs, processes, outputs
________ generally take the form of variables, which are items of data with values that
change over time. - Answer-Inputs
The input variables used in financial models are ___________ variables, which are
variables that influence the behavior of another variable. - Answer-independent
____________ usually simulate the behavior of known values and use those behaviors
to identify how unknown values are likely to behavior over time. - Answer-Processes
___________ represent the projected future values produced by processing input
variables through the model. - Answer-Outputs
Output variables are considered ____________ variables because they react to outside
influences. - Answer-dependent
Financial models either generate __________ estimates or __________ estimates. -
Answer-point
range
A _________ estimate is an estimated result that's assigned a single value.
Note: An important application of this for insurance companies would be for calculating
product profitability based on interest earnings. - Answer-point
A _________ estimate is a result that includes possible values within specified limits. -
Answer-range
A ________ is the projected value of an outcome from a decision. - Answer-payoff
A _________ table is a decision analysis tool that summarizes potential outcomes from
a decision in a tabular format. - Answer-payoff
AND OPERATIONS MANAGEMENT
(MODULE 3) EXAM VERIFIED 100%
CORRECT
___________ bias refers to a consistent cognitive error resulting from the tendency to
interpret and report data in terms of the observer's own culture. - Answer-Cultural
___________ bias is a consistent error in research outcomes that arises when people
perform better because they know they're being studied. - Answer-Attention
_________ acceptance bias refers to a consistent cognitive error based on a tendency
for individuals to make socially acceptable statements even when they feel something
else. - Answer-Social
A _________ is an item or system that simulates something else. - Answer-model
__________ modeling is a form of modeling that uses the processing capabilities of IT
to perform millions of simulations at once. - Answer-Computational
Decision __________ are the simple-to-understand rules a decision maker uses to
evaluate decision alternatives. - Answer-criteria
Decision ___________ are practical limitations that affect the selection of decision
alternatives. - Answer-constraints
States of _________ are potential influences on the outcome of a decision that aren't
under a decision maker's control.
Ex: market conditions such as changing interest rates and new market entrants -
Answer-nature
____________ models are mathematical constructs for projecting unknown or future
outcomes using known results or data. - Answer-Forecasting
Forecasting models allow users to find approximate values to represent unknowns,
called ___________. - Answer-estimates
_________-series models estimate unknown future values based on known, historical
data. - Answer-Time
,_________-series data is information about a variable over successive periods. -
Answer-Time
The simplest time-series model is called the __________ time-series model, where a
forecaster uses the data value(s) for the most recent period as the forecast value(s) for
the next future period. - Answer-naive
________ time-series models are easy to use and can be useful for estimating values
that don't change much from period to period. - Answer-Naive
Another simple form of time-series model is the __________ average model, which
uses the arithmetic average of a series of values (the mean) from previous periods as
the forecast value for the next future period. - Answer-arithmetic
The __________ average model gives equal weight to all data periods, regardless of
the age of those periods.
Note: This means old data is equally as important as new data. - Answer-arithmetic
1) The ________ moving average model is closely related to the arithmetic average
model.
2) It also requires finding the mean data value, but it considers only a specified number,
n, of the most recent data values.
Note: Each time the model is used, the data value from the oldest period is eliminated
and the data value from the most recent period is included. This can more accurately
reflect changing conditions than can the arithmetic average model. - Answer-simple
The ________ moving average time-series model assigns relative weights to the data
values used in the forecast.
Note: Typically, more recent data are assigned a greater weight or importance than are
older data. As with the simple moving average model, when values from new data
periods become available, new data are added to the model and the oldest data are
removed. - Answer-weighted
1) A ________ model uses historical data and other relevant variables as a basis for
describing unknown future data points.
2) In effect, these models create _____________ using patterns. - Answer-1) casual
2) projections
___________ models generate projections with excellent accuracy if the relationships
between variables can be expressed in numerical terms. - Answer-Casual
, _____________ is a measure of whether, and how strongly, two values are related. -
Answer-Correlation
Values __________ when a change in one value is associated with a consistent and
equivalent change (positive or negative) in the other value. - Answer-correlate
True or False:
Correlation doesn't prove causation. - Answer-True
___________ modeling refers to a computer-based mathematical model that
approximates the operation of real-world financial processes. - Answer-Financial
Most financial models consist of: - Answer-inputs, processes, outputs
________ generally take the form of variables, which are items of data with values that
change over time. - Answer-Inputs
The input variables used in financial models are ___________ variables, which are
variables that influence the behavior of another variable. - Answer-independent
____________ usually simulate the behavior of known values and use those behaviors
to identify how unknown values are likely to behavior over time. - Answer-Processes
___________ represent the projected future values produced by processing input
variables through the model. - Answer-Outputs
Output variables are considered ____________ variables because they react to outside
influences. - Answer-dependent
Financial models either generate __________ estimates or __________ estimates. -
Answer-point
range
A _________ estimate is an estimated result that's assigned a single value.
Note: An important application of this for insurance companies would be for calculating
product profitability based on interest earnings. - Answer-point
A _________ estimate is a result that includes possible values within specified limits. -
Answer-range
A ________ is the projected value of an outcome from a decision. - Answer-payoff
A _________ table is a decision analysis tool that summarizes potential outcomes from
a decision in a tabular format. - Answer-payoff
