SOA Exam FAM Sample Question 40
Study guide: Exam FAM
You are given:
(i) The number of claims follows a Poisson distribution with mean \lambda.
(ii) Observations other than 0 and 1 have been deleted from the data.
(iii) The data contain an equal number of observations of 0 and 1.
Calculate the maximum likelihood estimate of \lambda.
- A) 0.50
- B) 0.75
- C) 1.00
- D) 1.25
- E) 1.50
Answer this question and see the worked solution