Losses come from a mixture of an exponential distribution with mean 100 with probability p and an exponential distribution with mean 10,000 with probability 1- p. Losses of 100 and 2000 are observed. Determine the likelihood function of p. -0.01 pe 2º (1– p)e®² -0.2 ре (1-р)е" ре 100 (A) 100 10,000 10,000 -0.01 -20 pe (1– p)e“ pe (1– p)e02 (B) 100 10,000 100 10,000 20 (1– p)eº pe, (1- p)e -0.01 ре -0.2 (C) 100 10,000 100 10,000 pe, (1- p)e 00i (1– p)e02 -0.01 -20 ре (D) 100 10,000 100 10,000 e 0.01 +(1- p) -20 e (E) р. 100 10,000 100 10,000

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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Losses come from a mixture of an exponential distribution with mean 100 with probability p
and an exponential distribution with mean 10,000 with probability 1– p.
Losses of 100 and 2000 are observed.
Determine the likelihood function of p.
-0.01
pe (1– p)e“
pe 20 (1– p)e0²
-0.2
(A)
100
10,000
100
10,000
pe (1– p)e“
-0.01
(B)
pe (1– p)e02'
100
10,000
100
10,000
pe, (1- p)e0.
20 (1– p)eº
-0.01
pe
100
-0.2
(C)
pe
10,000
100
10,000
pe, (1- p)e 00i
-0.01
(D)
-20
ре
(1– p)e02
100
10,000
100
10,000
e 0.01
+(1– p)
e
-20
(E)
р.
100 10,000
100
10,000
Transcribed Image Text:Losses come from a mixture of an exponential distribution with mean 100 with probability p and an exponential distribution with mean 10,000 with probability 1– p. Losses of 100 and 2000 are observed. Determine the likelihood function of p. -0.01 pe (1– p)e“ pe 20 (1– p)e0² -0.2 (A) 100 10,000 100 10,000 pe (1– p)e“ -0.01 (B) pe (1– p)e02' 100 10,000 100 10,000 pe, (1- p)e0. 20 (1– p)eº -0.01 pe 100 -0.2 (C) pe 10,000 100 10,000 pe, (1- p)e 00i -0.01 (D) -20 ре (1– p)e02 100 10,000 100 10,000 e 0.01 +(1– p) e -20 (E) р. 100 10,000 100 10,000
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