CT 3 IFoA April 2005 Q12

Discussion in 'CT3' started by Sunil Sanga, Sep 2, 2016.

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  1. Sunil Sanga

    Sunil Sanga Member

    In this question part (iii) a
    What is the reason to use degree of freedom 5-1-1=3 instead of using 5-1=4 since parameter value is given we didn't estimate.

    However I found similar question in Ch 12 page 63. Also a note given why DF 4-1=3 is used here since the parameter value is given already in question

    Please clarify
     
  2. Sunil Sanga

    Sunil Sanga Member

    Anyone please help me on this
     
    Bharti Singla likes this.
  3. suraj

    suraj Member

    (iii) The following table gives the numbers of occupants in 2,423 cars observed on a road junction during a certain time period on a weekday morning.
    Number of occupants 1 2 3 4 5 6
    Frequency of cars 1,486 694 195 37 10 1

    The above data were modelled by a zero-truncated Poisson distribution as given in (i).
    The maximum likelihood estimate of θ is 0.8925 and the Cramer-Rao lower bound on variance is 5.711574 * 10^ -4 (you do not need to verify these results.)
     
  4. Sunil Sanga

    Sunil Sanga Member

    So the estimate wording is identification as in Ch 12 question only a parameter value is given.
    So whenever this estimate wording present...we can subtract 1 degree of freedom by assumption that parameter is estimated...

    Correct?
     
  5. suraj

    suraj Member

    Only if the parameter is estimated from the same data, which is the case in this question.
     

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