Not sure if there is an adequate answer to my question, but figured I'd ask anyway...
In the explanation to this problem, the author comes to a calculated solution of -1.725 as the lower bound to the 95% confidence interval. This leads to the selection of c) -1.7 as the answer.
But the technical (maybe pedantic) solution, imo, would be b) -8.3 million since the question asks for a value where the surplus will be greater than or equal to. And -1.7 falls within the 95% bounds of -1.725, where -1.7 is not >= -1.725...
This scenario reminds of a question from the real Part 1 exam last year where the options were all blatantly wrong, and everyone on the forums attested to this fact afterward.
Does GARP actively review it's exam solutions and 'throw out' erroneous ones giving everyone credit? Or would it review this question, determine that b) was correct, and only give credit to those who selected b) rather than c)?
Basically, should I always pick the pedantically correct answer and hope that GARP catches its mistakes, or try and make a best guess at what GARP thought was a correct answer?
Good luck to everyone tomorrow!
In the explanation to this problem, the author comes to a calculated solution of -1.725 as the lower bound to the 95% confidence interval. This leads to the selection of c) -1.7 as the answer.
But the technical (maybe pedantic) solution, imo, would be b) -8.3 million since the question asks for a value where the surplus will be greater than or equal to. And -1.7 falls within the 95% bounds of -1.725, where -1.7 is not >= -1.725...
This scenario reminds of a question from the real Part 1 exam last year where the options were all blatantly wrong, and everyone on the forums attested to this fact afterward.
Does GARP actively review it's exam solutions and 'throw out' erroneous ones giving everyone credit? Or would it review this question, determine that b) was correct, and only give credit to those who selected b) rather than c)?
Basically, should I always pick the pedantically correct answer and hope that GARP catches its mistakes, or try and make a best guess at what GARP thought was a correct answer?
Good luck to everyone tomorrow!