Question 3 Loss amounts follow a Pareto distribution. You observe the following 10 loss amounts: 1, 3, 5, 6, 8, 9, 10, 70, 95, 120 For integer & the Estimate a using the method of moments. A B с moment of a Pareto distribution with parameters a and is 4 D Less than 4.6 At least 4.6, but less than 4.8 At least 4.8, but less than 5.0 At least 5.0, but less than 5.2 (a-1)(a-2)...(a-k)

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Question 3
Loss amounts follow a Pareto distribution. You observe the following 10 loss amounts:
1, 3, 5, 6, 8, 9, 10, 70, 95, 120
For integer k, the
Estimate a using the method of moments.
A
с
moment of a Pareto distribution with parameters and is
4
D
Less than 4.6
At least 4.6, but less than 4.8.
At least 4.8, but less than 5.0
At least 5.0, but less than 5.2
At least 5.2
Previous
k
(a 1)(a 2)... (a-k)
Ⓡ
Overview
Ned
Transcribed Image Text:11 Question 3 Loss amounts follow a Pareto distribution. You observe the following 10 loss amounts: 1, 3, 5, 6, 8, 9, 10, 70, 95, 120 For integer k, the Estimate a using the method of moments. A с moment of a Pareto distribution with parameters and is 4 D Less than 4.6 At least 4.6, but less than 4.8. At least 4.8, but less than 5.0 At least 5.0, but less than 5.2 At least 5.2 Previous k (a 1)(a 2)... (a-k) Ⓡ Overview Ned
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