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-   -   MLE: Shortcut vs. First Principles (http://www.actuarialoutpost.com/actuarial_discussion_forum/showthread.php?t=337649)

HealthHoncho 01-21-2019 09:57 PM

MLE: Shortcut vs. First Principles
 
In practicing on ADAPT, I did a problem to estimate the theta parameter of a Weibull. The solution reveled what I've seen in ASM, that there are helpful shortcuts for estimation of a given distribution.
However has anyone who is preparing or passed the exam here think much of the MLE problems on the exam can be accomplished from first principles without killing too much time, if I were to be mixed up on the myriad of shortcuts? In other words, are problems designed in such a way that we should always be able to complete it using first principles in reasonable time?

What do you think?

NotSmart 01-21-2019 10:30 PM

Memorization > Understanding

therealsylvos 01-23-2019 12:21 PM

Quote:

Originally Posted by HealthHoncho (Post 9523073)
In practicing on ADAPT, I did a problem to estimate the theta parameter of a Weibull. The solution reveled what I've seen in ASM, that there are helpful shortcuts for estimation of a given distribution.
However has anyone who is preparing or passed the exam here think much of the MLE problems on the exam can be accomplished from first principles without killing too much time, if I were to be mixed up on the myriad of shortcuts? In other words, are problems designed in such a way that we should always be able to complete it using first principles in reasonable time?

What do you think?

When I took C a few years back I didn't rely on any of the shortcuts for MLE and used first principles only. It only took a bit longer and I felt more comfortable I'd get it right. If you're fast you should have enough time. But I also employed the strategy to immediately skip any non-parametric credibility question I came across, so that saved me more time for things like MLE.

jts75 01-23-2019 01:06 PM

You will come across questions that have no shortcuts. You will actually have to use first principles to solve them. It is also helpful if you have extra time and want to double check your work doing it both ways.


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