Question

What is a potential problem with grouping data into too many groups?

a.

It reduces statistical significance

b.

It increases errors in the analysis

c.

It makes data interpretation more difficult

d.

It may lead to incorrect conclusions due to small sample sizes

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (d).It may lead to incorrect conclusions due to small sample sizes Explanation:Grouping data into too many groups may lead to incorrect conclusions due to small sample sizes, as more groups mean less data in each group, reducing statistical significance and increasing the likelihood of errors in the analysis.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is a potential problem with grouping data into too many groups?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What should remain stable over time to ensure the validity of grouped data in experience analysis?

View solution

Q. What is an upper limit on the time interval for conducting mortality investigations?

View solution

Q. What is the first step in deriving assumptions for mortality or morbidity studies?

View solution

Q. Why is the time period important in collecting data for mortality or morbidity studies?

View solution

Q. What is the recommended time interval for mortality analysis?

View solution

Q. Which source is considered the best for mortality or morbidity data?

View solution

Q. Why should the period of investigation not be too large for mortality analysis?

View solution

Q. What are some factors considered for grouping data in mortality or morbidity analysis?

View solution

Q. How is the expected experience calculated in mortality or morbidity analysis?

View solution

Q. What does "Actual vs Expected (A/E)" represent in mortality or morbidity analysis?

View solution

Q. What is the credibility analysis in mortality or morbidity analysis?

View solution

Q. How are mortality or morbidity assumptions typically represented in practice?

View solution

Q. What does credibility analysis in mortality or morbidity analysis primarily focus on?

View solution

Q. How is the credibility factor calculated in mortality or morbidity analysis?

View solution

Q. What does a credibility factor of 0% signify in mortality or morbidity analysis?

View solution

Q. In the formula for finding adjustment factors, what does 'A' represent?

View solution

Q. How does the adjustment factor change with a credibility factor of 100%?

View solution

Q. What is mortality risk primarily concerned with in insurance?

View solution

Q. What is "model" risk in mortality assumption setting?

View solution

Q. How does parameter risk differ from model risk in mortality assumption setting?

View solution
View All MCQs on IC 92 Actuarial Aspects of Product Development

Recommended Subjects

Are you eager to expand your knowledge beyond IC 92 Actuarial Aspects of Product Development? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Financial Management and Financial Markets

Master the world of finance with our Financial Management and Financial Markets...

Human and Cultural Diversity

Explore the rich tapestry of human societies with our Human and Cultural Diversity...

Verbal Reasoning

Sharpen your logical thinking and reasoning abilities with our Verbal Reasoning...

Automotive Engine Design

Embark on a thrilling exploration of Automotive Engine Design, where the intricacies...

Environmental Biotechnology

Discover the intersection of biology and environmental science with our Environmental...

Cell Biology

Delve into the fascinating world of Cell Biology with our specialized category....

Verbal Ability

Hone your language and communication skills with our Verbal Ability category. Enhance...

Chemistry

Unlock the mysteries of chemistry with our Chemistry category. Delve into the...

Biochemical Engineering

Master the synergy of biology and engineering with our Biochemical Engineering...