IFoA-CAA-M0 Exam - Free IFoA Questions and Answers

Question #1 (Topic: )

Identify which of the following statements are true.
I. Skewness measures how peaked a set of data is.
II. Skewness is a measure of asymmetry of the distribution of the data about its mean.
III. For a symmetrically distributed data, the mean equals the median but not necessarily
the mode.
IV. The value of a measure of skewness can be positive, zero or negative.

A. I and II B. II and IV C. I and III D. II, III and IV

Answer: B

Question #2 (Topic: )

An insurance company sells policies where, for each policy, the policyholder pays the first
50 of the cost of any claim. A claim reported to the insurance company takes some
unknown value x.
Identify which of the mathematical expressions below represents the cost in to the
insurance company of the claim.

A. x - 50 B. x C. max(x, 50) D. max(x - 50, 0)

Answer: D

Question #3 (Topic: )

When differentiating the product of two factors, u and v, the Product Rule can be used.
State the Product Rule.
A)
[IFoA-IFoA-CAA-M0-6.0/IFoA-IFoA_CAA_M0-3_2.png]
B)
[IFoA-IFoA-CAA-M0-6.0/IFoA-IFoA_CAA_M0-3_3.png]
C)
[IFoA-IFoA-CAA-M0-6.0/IFoA-IFoA_CAA_M0-3_4.png]
D)
[IFoA-IFoA-CAA-M0-6.0/IFoA-IFoA_CAA_M0-3_5.png]

A. Option A B. Option B C. Option C D. Option D

Answer: D

Question #4 (Topic: )

Define the standard deviation of a finite data set.

A. The standard deviation is the sum of the difference between each data point and its expected value. B. The standard deviation is the product of the difference between each data point and its expected value. C. The standard deviation is the square root of the product of the squared difference between each data point and its expected value. D. The standard deviation is the square root of the average of the squared difference between each data point and its expected value.

Answer: D

Question #5 (Topic: )

A recurrence relation is given by: Un = 2Un - 1 + 3
If U0 = 0, calculate U2 =

A. 3 B. 9 C. 13 D. 21

Answer: B

IFoA IFoA-CAA-M0 - Module 0 - Entry Exam Exam