SOA Exam FAM Sample Question 49
Study guide: Exam FAM
Personal auto property damage claims in a certain region are known to follow the Weibull distribution:
F(x) = 1 - \exp\left[-\left(\frac{x}{\theta}\right)^{0.2}\right], \quad x > 0
A sample of four claims is:
130 240 300 540
The values of two additional claims are known to exceed 1000.
Calculate the maximum likelihood estimate of \theta.
- A) Less than 300
- B) At least 300, but less than 1200
- C) At least 1200, but less than 2100
- D) At least 2100, but less than 3000
- E) At least 3000
Answer this question and see the worked solution