1. 

   kaziz123 Member

   Hi,
   
   I cant undersrand why have we taken beta =2 instead of 0 in Q 14(iii) b of Sep 2005 exam.
   
   Thanks in advance.
   
   Kashif Aziz

    

   kaziz123, Mar 25, 2012

   #1
2. 

   John Lee ActEd Tutor Staff Member

   Becuase we're testing whether theta is 2 (ie the model conforms to that in part (ii))

    

   John Lee, Mar 27, 2012

   #2
3. 

   kaziz123 Member

   Re. Q14 (iii) b Exam sep 2006
   
   But part ii does not givr any information that beta is 2

    

   kaziz123, Mar 27, 2012

   #3
4. 

   John Lee ActEd Tutor Staff Member

   In part (ii) it says E(N)=γi². In part (iii) we have E(N)=γi^θ.
   
   So θ = 2.

    

   John Lee, Mar 28, 2012

   #4

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