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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? 
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