Suppose that we model the lifetimes (in months) of electronic components as independent exponential random variables with unknown parameter We model as having the gamma distribution with parameters a and b We believe that the mean lifetime is four months before we see any data If we were to observe...

The mean lifetime conditional on is 1 The mean lifet ...

Suppose that we model the lifetimes (in months) of electronic components as independent exponential random variables with

Question:

Suppose that we model the lifetimes (in months) of electronic components as independent exponential random variables with unknown parameter β. We model β as having the gamma with parameters a and b. We believe that the mean lifetime is four months before we see any data. If we were to observe 10 components with an average observed lifetime of six months, we would then claim that the mean lifetime is five months. Determine a and b. Use Exercise 21 in Sec. 5.7.
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...