Free Exam SRM (Statistics for Risk Modeling) Exam Questions and Answers
Exam SRM (Statistics for Risk Modeling) is part of the Society of Actuaries credentialing pathway. SOA exams are steps on a single sequenced pathway to Associate and then Fellow, using mnemonic codes rather than numbers — P for probability, FM for financial mathematics, FAM, SRM, PA and the advanced ALTAM and ASTAM papers. Results are reported on a 0 to 10 scale where 6 and above passes, and the pass mark is fixed before the exam is sat rather than curved.
The first 10 questions on this page are free to read, answers included — no account and no card. A plan opens the rest of the bank, the full timed practice test and your weak-topic reporting.
Last updated: September 12, 2026
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Question #1
What is the expected value of a random variable if its possible outcomes are 1, 2, and 3, each with a probability of 1/3?
Please select an optionIncorrectCorrect answer: B
The expected value is calculated as E(X) = _ [x * P(x)], so E(X) = (1*1/3) + (2*1/3) + (3*1/3) = 2.5.
Was this answer correct?Question #2
A portfolio has an expected return of 8%. If the risk-free rate is 3%, what is the risk premium?
Please select an optionIncorrectCorrect answer: B
The risk premium is calculated as expected return minus the risk-free rate: 8% - 3% = 5%.
Was this answer correct?Question #3
In a normal distribution, approximately what percentage of data falls within one standard deviation of the mean?
Please select an optionIncorrectCorrect answer: A
About 68% of data in a normal distribution falls within one standard deviation of the mean.
Was this answer correct?Question #4
In a risk model, which measure indicates the amount of uncertainty about the expected outcome?
Please select an optionIncorrectCorrect answer: A
Variance measures the spread of a distribution and indicates uncertainty around the expected outcome.
Was this answer correct?Question #5
In the context of a linear regression model, what does 'R-squared' signify?
Please select an optionIncorrectCorrect answer: B
R-squared represents the proportion of variance in the dependent variable explained by the independent variables, indicating the strength of the model's predictive capability.
Was this answer correct?Question #6
What is the main purpose of hypothesis testing in statistics?
Please select an optionIncorrectCorrect answer: A
Hypothesis testing is a statistical method used to make decisions about population parameters based on sample data.
Was this answer correct?Question #7
When conducting a regression analysis, what does multicollinearity refer to?
Please select an optionIncorrectCorrect answer: C
Multicollinearity occurs when independent variables in a regression model are highly correlated, making it difficult to determine individual effects.
Was this answer correct?Question #8
If a dataset has a mean of 10 and a standard deviation of 2, what is the z-score of the value 12?
Please select an optionIncorrectCorrect answer: D
Z-score is calculated as (X - Mean) / Standard Deviation, thus (12 - 10) / 2 = 1.
Was this answer correct?Question #9
Which of the following is NOT a property of the normal distribution?
Please select an optionIncorrectCorrect answer: B
The normal distribution is symmetrical and has its mean equal to its median; it is not skewed.
Was this answer correct?Question #10
What is the primary assumption of linear regression?
Please select an optionIncorrectCorrect answer: A
Linear regression assumes that the residuals (errors) are independent of one another.
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FAQ
Learn More: https://www.soa.org/programs/soa-certificates/
- Q1: What is the Exam SRM (Statistics for Risk Modeling) exam?
- A: Exam SRM (Statistics for Risk Modeling) is a SOA certification exam. Judging by the questions in our bank, it concentrates on regression, dataset, hypothesis, sample and confidence.
- Q2: What topics does the Exam SRM (Statistics for Risk Modeling) exam cover?
- A: Questions in our Exam SRM (Statistics for Risk Modeling) bank cluster around regression, dataset, hypothesis, sample, confidence, statistical, linear and interval. Working through the full set is the quickest way to find which of these you are weakest on.
- Q3: How should I prepare for Exam SRM (Statistics for Risk Modeling)?
- A: Work through the Exam SRM (Statistics for Risk Modeling) practice questions here, checking your answer on each one, then sit the practice test to rehearse the exam under timed conditions before the real thing.
- Q4: Are these real Exam SRM (Statistics for Risk Modeling) exam questions?
- A: They are drawn from officially released past questions and from community members who have sat Exam SRM (Statistics for Risk Modeling). Answers are verified and updated weekly.
- Q5: Where do I register for the Exam SRM (Statistics for Risk Modeling) exam?
- A: Register through SOA directly at https://www.soa.org/programs/soa-certificates/. Exampractice is not affiliated with SOA and does not administer the exam.
- Q6: Is there a free Exam SRM (Statistics for Risk Modeling) sample?
- A: Yes. Every Exam SRM (Statistics for Risk Modeling) page shows a free sample of real questions. Upgrading opens the full bank and the practice test.
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- A: SOA (Society of Actuaries) Certification Exams validate your expertise in actuarial science and risk management. These certifications demonstrate your proficiency in mathematical, statistical, and financial concepts essential for analyzing and managing risk in insurance, finance, and other industries.
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