SOA Exam FAM Sample Question 52
Study guide: Exam FAM
The random variable X has survival function:
S_X(x) = \frac{\theta^4}{(\theta^2 + x^2)^2}
Two values of X are observed to be 2 and 4. One other value exceeds 4.
Calculate the maximum likelihood estimate of \theta.
- A) Less than 4.0
- B) At least 4.0, but less than 4.5
- C) At least 4.5, but less than 5.0
- D) At least 5.0, but less than 5.5
- E) At least 5.5
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