Question: please solve the problem and any missing data assumed that I need it asap 3. Eire General Insurance has an arrangement with the reinsurance com-

please solve the problem and any missing data assumed that I need it asap

please solve the problem and any missing data assumed that I need

3. Eire General Insurance has an arrangement with the reinsurance com- pany SingaporeRe, whereby the excess of any claim over M is handled by the reinsurer. Claim size is traditionally modeled by a Pareto dis- tribution with parameters o and A = 8400. Show that the maximum likelihood estimator of a based on a sample of n + m claim payments (for Eire General) of the form (21, . .., In, M, ..., M) takes the form a = n/ _log(1 + x;/>) + mlog(1 + M/X). 1 If the amounts paid by Erie General based on a sample of size 10 = 7+3 = n +m were (14.9, 775.7, 805.2, 993.9, 1127.5, 1602.5, 1998.3, 2000, 2000, 2000), what would the maximum likelihood estimate of a be

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