SOA Exam FAM Sample Question 89
Study guide: Exam FAM
The following random sample of five claims is drawn from a Pareto distribution with parameters \alpha (unknown) and \theta = 1:
1.2 \qquad 1.6 \qquad 1.4 \qquad and two other values that exceed 2.0
Calculate the maximum likelihood estimate of \alpha.
- A) 0.62
- B) 0.72
- C) 0.94
- D) 1.04
- E) 1.15
Answer this question and see the worked solution