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ShortTerm Actuarial Math Old Exam C Forum 

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#2




perhaps if you clarify the application, it may help me understand your question.
What's the context? Normally we multiply the likelihoods for MLE, if independent.
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German ______________ Prelims: VEE: 
#3




Quote:
claim counts 0 or 1 2 3 or more each observation has two policies find the maximum likelihood estimate beta? 
#4




If I understand it correctly, you have 2 policies that may have 0 or 1 claim, 2 policies that have 2 claims each, and 2 policies that have 3 or more claims.
I would solve it as follows, but I may be wrong. The likelihood would be (pr(n=0)+pr(n=1))^2 * (pr(n=2))^2 * (pr(n>=3)^2 replace all betas and log it, derive respect to beta = 0. If this is correct I get beta=2.71107
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German ______________ Prelims: VEE: Last edited by gauchodelpaso; 10132019 at 06:33 PM.. 
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