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, ~5,304 words.
KS statistic:. Individual data only, no grouped data. Critical value falls as grows. Continuous distributions only. Chi-square GoF: over groups. Degrees of freedom, where is 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...
Read the full lesson, free →
Worked examples, audio narration, and practice. No signup to read.
What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Example 4
- Example 5
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 4e
Browse all free Exam ASTAM lessons or jump into free Exam ASTAM practice questions.