Question

If the magnitude of the earthquakes recorded in a region of a country follows a distribution with parameter θ

\frac{1}{\theta }e^\frac{-x}{\theta },x\geq 0,\theta \geq 0 then find

i) maximum likelihood estimator of the parameter θ,

ii) maximum likelihood estimate of the parameter on the basis of the following data:

Magnitude of the Earthquakes

(on the Richter scale)

 

6.7

 

7.7

 

5.6

 

7.3

 

6.7

 

6.6

 

7.8

 

6.7

 

6.2

 

5.2

iii) Show that maximum likelihood estimator is unbiased and sufficient for parameter θ.

16 Feb 2018
Answer :
Word Count : 489
We are asked to manually find the Maximum Likelihood Estimator (MLE) for the parameter $\theta$ of an exponential distribution, then compute it for given earthquake magnitudes, and show its properties. Let's solve step by step. --- ### Given PDF of the exponential distribution: $$ f(x; \theta) = \frac{1}{\theta} e^{-x/\theta}, \quad x \ge 0, \theta > 0 $$ Data (magnitudes of earthquakes): $$ 6.7, 7.7, 5.6, 7.3, 6.7, 6.6, 7.8, 6.7, 6.2, 5.2 $$ --- ## Step i: Maximum Likelihood Estimator (MLE) of $\theta$ 1. Likelihood function For a sample $x_1, x_2, \dots, x_n$, the likelihood is: $$ L(\theta) = \prod_{i=1}^n f(x_i;\theta) = \prod_{i=1}^n \frac{1}{\theta} e^{-x_i/\theta} = \frac{1}{\theta^n} e^{-\sum x_i / \theta} $$
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