Refer to Section 9.7.3. Let T = t i and W = w i . Suppose that

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Refer to Section 9.7.3. Let T = ∑ti and W = ∑wi. Suppose that survival times have a negative exponential distribution with parameter λ.

a. Using log likelihood (9.19), show that λ̂ = W/T.

b. Conditional on T, show that W has a Poisson distribution with mean Tλ. Using the Poisson likelihood, show that λ̂ = W/T.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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