CPCU 500 Practice Exam 9 Questions And
Answers
Review "Exam 9 Question 001"
During the last three years, Partridge has expanded its hours of
operation to remain open 24 hours a day, 7 days a week. Partridge
has also begun to carry a line of computer equipment including
small portable accessories such as flash drives, USB converters, and
wireless accessories.
In analyzing Partridge's three year loss data for forecasting
purposes, what is the mean loss value?
Select one:
A. $1,500
B. $1,590
C. $2,400
D. $2,472 -
correct answer ✅D. $2,472
In analyzing Partridge's data for forecasting purposes, the mean
value for Partridge's losses is $2,472 (the sum of all losses for the
three years divided by the total number of claims, 37,080 ÷ 15 =
2,472).
,CPCU 500 Practice Exam 9 Questions And
Answers
Which one of the following describes the law of large numbers?
Select one:
A. It states that events that have occurred in the past under
identical conditions and resulting from unchanging causal forces
will increase at a predictable rate into the future.
B. It states that, in order to be able to predict the relative
probability of future events, those events must be both frequent,
and independent of one another.
C. It states that the more times a particular event has occurred in
the past, the greater the likelihood of that same event occurring in
the future.
D. It states that as the number of similar but independent exposure
units increases, the relative accuracy of predictions about future
outcomes also increases -
correct answer ✅D. It states that as the number of similar but
independent exposure units increases, the relative accuracy of
predictions about future outcomes also increases.
, CPCU 500 Practice Exam 9 Questions And
Answers
In a normal distribution 34.13% of all outcomes are within one
standard deviation above the mean. The portion between one and
two standard deviations above the mean contains 13.59% of all
outcomes. What percentage of the total outcomes is between two
standard deviations below the mean and two standard deviations
above?
Select one:
A. 20.54%
B. 47.72%
C. 68.26%
D. 95.44% -
correct answer ✅D. 95.44%
The percentage of the total outcomes between two standard
deviations below the mean and two standard deviations above
95.44%. The area between the mean and two standard deviations
above the mean contains 47.72% (34.13 + 13.59) of the outcomes,
and since every normal distribution is symmetrical, another 47.72%
of all the outcomes fall within the area between the mean and two
standard deviations below the mean. 47.72 + 47.72 = 95.44
Answers
Review "Exam 9 Question 001"
During the last three years, Partridge has expanded its hours of
operation to remain open 24 hours a day, 7 days a week. Partridge
has also begun to carry a line of computer equipment including
small portable accessories such as flash drives, USB converters, and
wireless accessories.
In analyzing Partridge's three year loss data for forecasting
purposes, what is the mean loss value?
Select one:
A. $1,500
B. $1,590
C. $2,400
D. $2,472 -
correct answer ✅D. $2,472
In analyzing Partridge's data for forecasting purposes, the mean
value for Partridge's losses is $2,472 (the sum of all losses for the
three years divided by the total number of claims, 37,080 ÷ 15 =
2,472).
,CPCU 500 Practice Exam 9 Questions And
Answers
Which one of the following describes the law of large numbers?
Select one:
A. It states that events that have occurred in the past under
identical conditions and resulting from unchanging causal forces
will increase at a predictable rate into the future.
B. It states that, in order to be able to predict the relative
probability of future events, those events must be both frequent,
and independent of one another.
C. It states that the more times a particular event has occurred in
the past, the greater the likelihood of that same event occurring in
the future.
D. It states that as the number of similar but independent exposure
units increases, the relative accuracy of predictions about future
outcomes also increases -
correct answer ✅D. It states that as the number of similar but
independent exposure units increases, the relative accuracy of
predictions about future outcomes also increases.
, CPCU 500 Practice Exam 9 Questions And
Answers
In a normal distribution 34.13% of all outcomes are within one
standard deviation above the mean. The portion between one and
two standard deviations above the mean contains 13.59% of all
outcomes. What percentage of the total outcomes is between two
standard deviations below the mean and two standard deviations
above?
Select one:
A. 20.54%
B. 47.72%
C. 68.26%
D. 95.44% -
correct answer ✅D. 95.44%
The percentage of the total outcomes between two standard
deviations below the mean and two standard deviations above
95.44%. The area between the mean and two standard deviations
above the mean contains 47.72% (34.13 + 13.59) of the outcomes,
and since every normal distribution is symmetrical, another 47.72%
of all the outcomes fall within the area between the mean and two
standard deviations below the mean. 47.72 + 47.72 = 95.44
