CAS Exam MAS-I Fall 2019, Question 14

Study guide: Exam MAS-I

You are given the following information:

• X is a random variable from a single-parameter Pareto distribution with \alpha = 5 and unknown \theta
• \bar{x} is the sample mean of n independent observations from this distribution
• c\bar{x} is an unbiased estimator of \theta

Calculate c.

• A) Less than 1.5
• B) At least 1.5, but less than 2.5
• C) At least 2.5, but less than 3.5
• D) At least 3.5, but less than 4.5
• E) At least 4.5

Answer this question and see the worked solution

Concepts tested

• Unbiasedness
• Single-Parameter Pareto Distribution
• Sample Mean
• Expected Value

More questions from this set

• CAS Exam MAS-I Fall 2019, Question 13
• CAS Exam MAS-I Fall 2019, Question 15