Insurance Research & Evidence-Based Practice 2

Question 1

In insurance research, what does a 'confidence interval' represent?

Accepted Answer

The range within which the true population parameter likely falls

Answer

A confidence interval defines the range where the true population value is expected to fall with a specified level of certainty (e.g., 95%).

Question 2

Which study design is considered the gold standard for establishing causality in insurance outcome research?

Accepted Answer

Randomized controlled trial

Answer

Randomized controlled trials minimize confounding by randomly assigning subjects to treatment and control groups, establishing the strongest causal evidence.

Question 3

An insurer uses a loss development triangle to estimate future claim payments. What is the primary purpose of this actuarial tool?

Accepted Answer

To project ultimate losses from immature claim data

Answer

Loss development triangles show how reported claims mature over time, allowing actuaries to estimate incurred but not yet fully developed losses.

Question 4

What is 'selection bias' in the context of insurance research?

Accepted Answer

Systematic error from non-random differences between study and comparison groups

Answer

Selection bias occurs when the study sample is not representative of the population, leading to skewed or invalid conclusions.

Question 5

A meta-analysis in insurance research primarily serves to:

Accepted Answer

Pool and synthesize results from multiple independent studies

Answer

Meta-analysis statistically combines findings from several studies to produce a more precise overall estimate of an effect.

Insurance Practice Test

Insurance Practice Test

Insurance Research & Evidence-Based Practice 2