CAS Exam MAS-I Spring 2019, Question 25
Study guide: Exam MAS-I
A type of machine has a lifetime following an exponential distribution with mean \mu. All machine lifetimes are independent.
To estimate the expected lifetime of this machine, the factory measures lifetimes of 4 sample machines and takes the average excluding the lowest and highest values. Denote this estimate \hat{\mu}.
Calculate the ratio E(\hat{\mu})/\mu.
- A) Less than 0.8
- B) At least 0.8, but less than 1.0
- C) At least 1.0, but less than 1.2
- D) At least 1.2, but less than 1.4
- E) At least 1.4
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