3. A certain actuarial model of mortality rate is fitted to some given data. Table 2 belowreports the Z-score statistic of the model graduation.(a) List the key steps involved in developing an actuarial model.(b) Explain why we need graduation. What do we actually test statistically?(c) What are the drawbacks of a x²- test? Explain how the sign test may overcomethese.(d) Write a statistical hypothesis to test the adherence of the model to the data.(e) The life table data below provides an estimate of mortality rates obtained froma three-parameter Poisson model. Give the quality of goodness-of-fit of the Poissonmodel by performing statistical tests based on:, and draw the conclusions.i. x²-test.ii. Standardized deviations test. [Consider the following subintervals for the datarange: A₁ = (-∞, −3], A₂ = (−3,−2], A3 = (−2, −1], A4 = (–1, 0], A5 = (0, 1],A6 = (1, 2], A7 = (2, 3], and Ag = (3, ∞).]iii. Sign testiv. Change-of-sign testv. Grouping-of-sign testvi. Lag-2 serial correlation testAge(x) lx dxλº (x10-³)Zx128119 142.3131-1.099761407750 20 2.53940.077828460.738500196525 22 2.88585998 23 3.39610.591986895586 260.615330594.13535.21455245 280.138423514659 326.80400.072773214222 379.1829-0.257579573660 4412.8197-0.386292083012 5418.4927-0.161609032500 6827.52400.015271572113 87 42.1675-0.028436351469 100 66.20830.62422085883 95 105.73050.70883012418 70169.54550.62843083181 49 267.40331.10547651Table 2: Tabel of mortality rates.!1722273237424752626772778287

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MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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9) The following results are from a regression where the dependent variable is GRADUATION RATE and the independent variables are % OF CLASSES UNDER 20, % OF CLASSES OF 50 OR MORE, STUDENT/FACULTY RATIO, ACCEPTANCE RATE, 1ST YEAR STUDENTS IN TOP 10% OF HS CLASS. The data were split into 2 samples and the following regression results were obtained from the split data. a) What is heteroscedasticity? (b) Why is heteroscedasticity a problem? c) Based on a comparison of the two sets of output, does it appear that there is heteroscedasticity in the data set? Explain. Be sure to write down your null and alternative hypothesis, calculate the test statistic, and find your critical value (test at the 5% level of significance).
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A large policy debate revolves about the causes and consequences of child labour. Extensive child labour at early ages is often considered as harmful and there is substantial theoretical and empirical interest in determining the causes for child labour. Therefore, we would like to analyze the relationship between wealth (e.g. the number of cattle or other assets) and child labour, using household data collected in several villages in rural Africa. Suppose we have data on Y and X iv where Y, is the number of hours worked by child i in village v and X, is family wealth. a) Explain how this is related to the concept of Panel Data. b) Explain how you could estimate the relationship between wealth and child labour using pooled OLS, Random Effect (RE), Fixed Effect (FE) estimators. Write down the estimation equations and the conditions needed to guarantee consistency. Compare the FE and the OLS estimators: Is either of these two estimators based on weaker assumptions than the other? c)…
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