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PRMIA Exam 8010 Topic 2 Question 68 Discussion

Actual exam question for PRMIA's 8010 exam
Question #: 68
Topic #: 2
[All 8010 Questions]

Which of the following are valid approaches for extreme value analysis given a dataset:

1. The Block Maxima approach

2. Least squares approach

3. Maximum likelihood approach

4. Peak-over-thresholds approach

Show Suggested Answer Hide Answer
Suggested Answer: C

For EVT, we use the block maxima or the peaks-over-threshold methods. These provide us the data points that can be fitted to a GEV distribution.

Least squares and maximum likelihood are methods that are used for curve fitting, and they have a variety of applications across risk management.


by Felice at Mar 09, 2025, 02:13 PM

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Jonell
I can't believe they're including the Least squares approach as an option. That's like using a hammer to perform open-heart surgery!
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Stevie
2 days ago
All of the approaches listed seem like they could be valid for extreme value analysis. This question is really testing our understanding of the different techniques, not just memorization.
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Lauran
10 days ago
Maximum likelihood is a standard technique for parameter estimation, so I'd expect it to be a valid approach for extreme value analysis. The question seems to be testing our knowledge of different statistical methods.
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Nikita
15 days ago
I think the correct answer is D) All of the above because all the approaches mentioned can be used for extreme value analysis.
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Timothy
22 days ago
The Block Maxima approach and the Peak-over-thresholds approach seem to be the most relevant for extreme value analysis. I'm not sure why the Least squares approach would be considered valid here.
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Felix
20 hours ago
The Least squares approach is also valid for extreme value analysis.
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Luann
6 days ago
I agree, those two approaches are commonly used for extreme value analysis.
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Beckie
11 days ago
I think the Block Maxima approach and the Peak-over-thresholds approach are both valid.
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Karl
25 days ago
I believe the valid approaches are the Least squares approach and the Maximum likelihood approach.
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Valda
1 months ago
I think the valid approaches for extreme value analysis are the Block Maxima approach and the Peak-over-thresholds approach.
upvoted 0 times
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