Hi I have a doubt in the third bit of 7th question in April 2003 UK exam paper In the third bit where we have to write down the likelihood function. I have written. the mulitplied pdf of x1...x6 (for the claims <=M) and then multiplied by (p(xi>M))^4. Which is wrong according to the report answer. I have also noticed that in the reports they mentioned the comment on the mistake I made. A common error was to express the likelihood as the probability of 4 claims exceeding M multiplied by the product of x1 to x6. I don't understand why my way of expressing likelihood is a mistake. can you explain? thanks!
