Actuarial Outpost
 
Go Back   Actuarial Outpost > Exams - Please Limit Discussion to Exam-Related Topics > SoA/CAS Preliminary Exams > Exam 4/C - Construction and Evaluation of Actuarial Models
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

DW Simpson
Actuarial Jobs

Visit our site for the most up to date jobs for actuaries.

Actuarial Salary Surveys
Property & Casualty, Health, Life, Pension and Non-Tradtional Jobs.

Actuarial Meeting Schedule
Browse this year's meetings and which recruiters will attend.

Contact DW Simpson
Have a question?
Let's talk.
You'll be glad you did.


Reply
 
Thread Tools Display Modes
  #1  
Old 01-03-2018, 12:23 PM
colt484 colt484 is offline
SOA
 
Join Date: Aug 2014
Posts: 9
Default SOA practice problems, Question 44

You are given:
(i) Losses follow an exponential distribution with mean (Theta.)
(ii) A random sample of 20 losses is distributed as follows:
Loss Range Frequency
[0, 1000] 7
(1000, 2000] 6
(2000, (Infinity) 7
Calculate the maximum likelihood estimate of (Theta.)

When I work this out, I get Theta = -1000ln(20/33). Looking at the solutions for the SOA this is the same answer, however, I evaluate this at 500. This is not listed as the correct answer and is way outside the range of possible answers. Have I missed the mark here?
Reply With Quote
  #2  
Old 01-03-2018, 12:40 PM
daaaave daaaave is offline
David Revelle
 
Join Date: Feb 2006
Posts: 2,928
Default

I don't have the current SOA solutions handy, but the answer is -1000/ln(20/33), not -1000*ln(20/33).
__________________

Follow us on Twitter, Facebook, and LinkedIn
Reply With Quote
  #3  
Old 01-03-2018, 12:55 PM
colt484 colt484 is offline
SOA
 
Join Date: Aug 2014
Posts: 9
Default

Quote:
Originally Posted by daaaave View Post
I don't have the current SOA solutions handy, but the answer is -1000/ln(20/33), not -1000*ln(20/33).
Algebra Mistake. Thank you.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 07:51 AM.


Powered by vBulletin®
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.11531 seconds with 11 queries