Statistics Regulatory Frameworks & Compliance 5

Question 1

In actuarial science, which regulatory body in the U.S. sets the professional standards that actuaries must follow when performing statistical analyses for insurance filings?

Accepted Answer

Actuarial Standards Board

Answer

The Actuarial Standards Board (ASB) issues Actuarial Standards of Practice (ASOPs) governing how actuaries perform and document statistical analyses.

Question 2

Under the Fair Credit Reporting Act, when an adverse action is taken based on statistical scoring models, lenders must provide consumers with:

Accepted Answer

The specific reasons for the adverse action

Answer

FCRA requires creditors to provide specific reason codes explaining which factors most negatively affected the consumer's credit score.

Question 3

Which type of error is most relevant in FDA drug approval decisions when considering the regulatory risk of approving an ineffective drug?

Accepted Answer

Type I error (false positive)

Answer

A Type I error in drug approval means concluding a drug is effective when it is not, representing the risk of approving an ineffective treatment.

Question 4

The concept of 'data governance' in regulatory compliance primarily refers to:

Accepted Answer

Policies ensuring data quality, integrity, and authorized use

Answer

Data governance encompasses the policies, procedures, and accountability structures that ensure data is accurate, consistent, and used appropriately.

Question 5

Under SEC Regulation Fair Disclosure (Reg FD), what statistical or analytical materials must be disclosed publicly?

Accepted Answer

Any material non-public information disclosed selectively to market professionals

Answer

Reg FD requires companies to publicly disclose any material non-public information they selectively disclose to market professionals.

Statistics Practice Test

Statistics Practice Test

Statistics Regulatory Frameworks & Compliance 5