SOA Exam FAM Sample Question 9
Study guide: Exam FAM
You are given:
(i) Losses follow an exponential distribution with mean \theta.
(ii) A random sample of 20 losses is distributed as follows:
| Loss Range | Frequency |
|---|---|
| [0, 1000] | 7 |
| (1000, 2000] | 6 |
(2000, \infty) |
7 |
Calculate the maximum likelihood estimate of \theta.
- A) Less than 1950
- B) At least 1950, but less than 2100
- C) At least 2100, but less than 2250
- D) At least 2250, but less than 2400
- E) At least 2400
Answer this question and see the worked solution