SOA Exam FAM Sample Question 7
Study guide: Exam FAM
The number of claims follows a negative binomial distribution with parameters \beta and r, where \beta is unknown and r is known. You wish to estimate \beta based on n observations, where \bar{x} is the mean of these observations.
Determine the maximum likelihood estimate of \beta.
- A)
\bar{x}/r^2 - B)
\bar{x}/r - C)
\bar{x} - D)
r\bar{x} - E)
r^2\bar{x}
Answer this question and see the worked solution