SOA Exam FAM Sample Question 39
Study guide: Exam FAM
You are given:
(i) A sample of losses is:
600 700 900
(ii) No information is available about losses of 500 or less.
(iii) Losses are assumed to follow an exponential distribution with mean \theta.
Calculate the maximum likelihood estimate of \theta.
- A) 233
- B) 400
- C) 500
- D) 733
- E) 1233
Answer this question and see the worked solution