Dimension reduction via principal components analysis and unsupervised clustering via k-means and hierarchical clustering.
These are the key learning objectives for Principal Components and Cluster Analysis on SOA Exam SRM. Paraphrased from the public SOA syllabus — we recommend also checking the current syllabus on soa.org before your exam sitting.
Compute and interpret principal components for dimension reduction
Apply k-means clustering and select an appropriate number of clusters
Apply hierarchical clustering and interpret dendrograms
Upload your ACTEX Exam SRM digital edition, scanned ASM pages, TIA handouts, or your own notes. exclam.ai extracts the Principal Components and Cluster Analysis sections and generates flashcards automatically.
Generate multiple-choice quizzes specifically on Principal Components and Cluster Analysis. Weak questions get re-surfaced until you get them right consistently.
Because Principal Components and Cluster Analysis is 5–10% of your exam, losing it during review costs you. FSRS brings it back at the optimal moment.
SOA Exam SRM has 5 topic areas. Principal Components and Cluster Analysis is weighted at approximately 5–10% of the exam — here is where it sits relative to the other topics.
| Topic area | Weight |
|---|---|
| Basics of Statistical Learning | 7–13% |
| Linear Models | 40–50% |
| Decision Trees | 20–25% |
| → Principal Components and Cluster Analysis | 5–10% |
| Time Series Models | 5–10% |
Supervised and unsupervised learning, model assessment, bias-variance tradeoff, and resampling methods including cross-validation.
Ordinary least squares regression, generalized linear models, variable selection, and regularization techniques.
Classification and regression trees, pruning, and ensemble methods including bagging, random forests, and boosting.
Introduction to time series analysis including autoregressive, moving average, and ARIMA models.
Upload your ACTEX Exam SRM digital edition, scanned ASM pages, TIA handouts, or your own notes. exclam.ai generates a fully guided study plan with adaptive flashcards and quizzes for this topic.