SOA Exam FAM Sample Question 53
Study guide: Exam FAM
You are given:
(i) The distribution of the number of claims per policy during a one-year period for 10,000 insurance policies is:
| Number of Claims per Policy | Number of Policies |
|---|---|
| 0 | 5000 |
| 1 | 5000 |
| 2 or more | 0 |
(ii) You fit a binomial model with parameters m and q using the method of maximum likelihood.
Calculate the maximum value of the loglikelihood function when m = 2.
- A) -10,397
- B) -7,781
- C) -7,750
- D) -6,931
- E) -6,730
Answer this question and see the worked solution