Perform model selection using graphical procedures, hypothesis tests (Kolmogorov-Smirnov, Chi-square goodness-of-fit, Likelihood ratio), and score-based approaches (SBC, BIC, AIC).
Free SOA Exam ASTAM (Advanced Short-Term Actuarial Mathematics) lesson in Construction and Selection of Parametric Models. 35 min read, ~5,314 words.
KS statistic:. Continuous distributions and individual data only, never grouped. Critical value falls as grows. Chi-square GoF:, df ( = parameters estimated from the data). Merge tail groups until every. Likelihood ratio:. Nested models only. Reject the simple model when the statistic exceeds the critical value. AIC; BIC/SBC. Smaller is...
Read the full lesson, free →
Worked examples and practice. Free with a free account, no card.
What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Example 4
- Example 5
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- 4e
Browse all free Exam ASTAM lessons or jump into free Exam ASTAM practice questions.