Actuarial Notes

CAS Exam MAS-I Fall 2018, Question 17

Study guide: Exam MAS-I

Suppose that X_1, \ldots, X_{10} is a random sample from a normal distribution N(0, \sigma^2) such that:

\sum_{i=1}^{10} X_i = 10 \quad \text{and} \quad \sum_{i=1}^{10} X_i^2 = 500

Calculate the value of minimum variance unbiased estimator of \sigma^2.

  • A) Less than 30
  • B) At least 30, but less than 50
  • C) At least 50, but less than 70
  • D) At least 70, but less than 90
  • E) At least 90

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