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 Global Actuarial & Analytcs Recruitment
Download our 2017 Actuarial Salary Survey
now with state-by-state salary information!


Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 01-31-2018, 09:32 AM
verdun11 verdun11 is offline
SOA
 
Join Date: Dec 2015
College: University of North Carolina
Posts: 21
Default SOA 180 Solution Question

Hi everyone, had a question about this question: https://imgur.com/a/vZ3jY

In the solution, they use a Gamma integral and what not. I'm a bit confused why. Why didn't they just find the sample variance of the exponential MLE (6^2)/2= 18 and the derivative of the F(x) function (-x/theta^2)*e^(-x/theta), and use 18 * ( (10/6^2)* e^(-10/6) ) ^2 to solve.

What exactly am I missing here with their approach, and is there an easier way to do it than the SOA did?
__________________
P FM MFE MLC C FAP VEE(Econ, Fin, Stat)
Reply With Quote
  #2  
Old 01-31-2018, 10:59 AM
Academic Actuary Academic Actuary is offline
Member
 
Join Date: Sep 2009
Posts: 7,513
Default

That's what they used. You have the derivative of the product of two terms with theta in them. I do not know of an easier way than what was done here..
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
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 05:27 PM.


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 0.11396 seconds with 9 queries