Introduction
What is Exam SRM
Exam SRM - Statistics for Risk Modeling is one of the preliminary exams administered by the Society of Actuaries (SOA). Exam SRM assumes knowledge of probability and mathematical statistics, which are covered in Exam P - Probability and VEE Mathematical Statistics, respectively.
Exam SRM tests the candidate's understanding of mathematical concepts related to Basics of Statistical Learning, Linear Models, Time Series Models, Decision Trees, and Unsupervised Learning Techniques.
Although the official syllabus states, "This exam [SRM] is a prerequisite for the Predictive Analytics [PA] exam", this was no longer the case as of December 2021. However, despite this technicality, it is still highly recommended to take SRM before PA, since many of the concepts on SRM lead into the concepts on PA. As of the January 2024 sitting, 96.4% of students passed SRM before PA.
When Is It Offered
To register for Exam SRM, you will need to visit the SOA website and create an account if you don't already have one. Once you have an account, log in and follow the registration process for the exam. Make sure to register before the deadline, as late registrations are not accepted. Additional information for exam registration can be found in the FAQs.
Registration Deadlines
There are multiple testing windows for exams by computer-based testing (CBT) each year. In a limited/selected number of locations outside the United States where CBT is not available, the exam will be offered by paper and pencil during specified administrations (see details (*) below).
| CBT Dates | Paper/Pencil Dates* | Registration Deadline |
|---|---|---|
| May 23-29, 2024 | May 23, 2024 | April 25, 2024 |
| September 3-9, 2024 | September 3, 2024 | August 6, 2024 |
| Jan 3-9, 2025 | January 3, 2025 | December 3, 2024 |
How Is It Scored
The exam consists of 35 multiple-choice questions, administered by CBT or by Paper/Pencil. The exam is 3.5 hours long. Each question has five answer choices identified by the letters A, B, C, D, and E, only one of which is correct.
The exam will also include a few (unspecified number) of pilot questions, as described in the syllabus. Once you complete the exam, the raw score is calculated by summing the number of correct answers, excluding pilot questions. Since there is no penalty for incorrect answers, it is beneficial to provide an answer for every question.
Your raw score is then measured against the pass mark for your exam, and converted to a scale from 0 to 10. The pass mark is defined as the minimum number of correct answers to pass. A score of 6 or higher results in a pass. Recently, the average Exam SRM pass mark percentage has been reported as 60% - 63%. The pass mark percentage is calculated as the pass mark (whole number) divided by the number of scored questions. Not everyone taking the CBT exam is necessarily presented with the same questions, so this percentage can vary depending on the specific set of questions you are given. This document released by the SOA and CAS describes the formulas used to convert raw scores to the 0 to 10 scale for Exam P. Although not explicitly stated, it can be assumed the conversion system extends to Exam SRM.
Assuming a 60% average pass mark percentage, you can expect the following conversions. Note that the table assumes that the floor of (60% * the number of non-pilot questions) is the pass mark.
| 0 Pilot Questions | 1 Pilot Question | 2 or 3 Pilot Questions | % of Pass Mark | Score |
|---|---|---|---|---|
| Pass Mark: 21 | Pass Mark: 20 | Pass Mark: 19 | 100% | 6 |
| 0-10 | 0-9 | 0-9 | <50% | 0 |
| 11-12 | 10-11 | 10-11 | 50%-60% | 1 |
| 13-14 | 12-13 | 12-13 | 60%-70% | 2 |
| 15-16 | 14-15 | 14-15 | 70%-80% | 3 |
| 17-18 | 16-17 | 16-17 | 80%-90% | 4 |
| 19-20 | 18-19 | 18 | 90%-100% | 5 |
| 21-23 | 20-21 | 19-20 | 100%-110% | 6 |
| 24-25 | 22-23 | 21-22 | 110%-120% | 7 |
| 26-27 | 24-25 | 23-24 | 120%-130% | 8 |
| 28-29 | 26-27 | 25-26 | 130%-140% | 9 |
| 30-35 | 28-34 | 27-33 (32) | >140% | 10 |
The mock exams feature on The Actuarial Nexus uses a 60% pass mark percentage to score your exam. It does not assume any questions are pilot questions.
When Can I Expect Results
Starting in May 2024, a preliminary pass/fail will be displayed on the screen at the conclusion of the exam. Students may also receive a pass/fail document via e-mail. On Exam P and FM, which also displays immediate results, some students have reported not receiving an immediate pass/fail on screen, but receiving a text or e-mail immediately after the exam. In either case, you should have access to your preliminary results shortly after completion of your exam. Although these results are preliminary, it is reasonable to assume that the preliminary pass/fail will match the final pass/fail.
Approximately 8 weeks after your exam sitting, passing candidate names and numbers will be posted on the SOA website. At that point, you will be able to access your 0 to 10 grade.
Additional Information
Please read the syllabus and FAQs carefully as it also includes important information about the exam.