Determine which of the following statements is/are true about Pearson residuals.

• They can be used to calculate a goodness-of-fit statistic.
• They can be used to detect if additional variables of interest can be used to improve the model specification.
• They can be used to identify unusual observations.

• I only
• II only
• III only
• I, II, and III
• The correct answer is not given by (A), (B), (C), or (D).

Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

Key: D

I is true. See Page 348 of Frees.

II is true. See Page 347 of Frees.

III is true. See Page 347 of Frees.

Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.