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Old 09-24-2017, 03:29 PM
Seasplash Seasplash is offline
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Default MLE question involving both frequency and severity distributions

There are two claims in 1 year, and the frequency distribution is Poisson with parameter theta. Those two claims are x = 3 and x = 6 and the severity follows an Inverse exponential distribution with parameter theta. Estimate theta using MLE.

Would the answer be 8/3? I just want to make sure I'm doing it correctly. If someone can show the solution that would be great too, thanks.
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Old 09-25-2017, 02:30 PM
catdynasty528 catdynasty528 is offline
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I also got 8/3.

I'm guessing your solution is correct if you want to post it and the community can verify.
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Old 09-25-2017, 03:00 PM
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ALivelySedative ALivelySedative is online now
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How bad is it that I already don't remember how to do this off the top of my head...??
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Old 09-25-2017, 09:29 PM
Milton Friedman Milton Friedman is offline
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that's the answer I got as well-I suppose that's right.
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Old 09-25-2017, 10:01 PM
Seasplash Seasplash is offline
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Alright thanks! Just needed the confirmation!
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Old 12-06-2017, 09:16 AM
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Can someone please post the solution. I don't know why I'm getting 4/3 and not 8/3 as gotten by everybody.
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Old 12-06-2017, 09:42 AM
daaaave daaaave is offline
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and solving gives theta-hat = 8/3
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