(See Solution) Consider a random sample of size n from a Pareto distribution, Xi ~ PAR (theta, 2). Find the ML Equation d/d theta (ln L(theta)) = 0 (b) From the
Question: Consider a random sample of size n from a Pareto distribution, Xi ~ PAR (theta, 2).
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Find the ML Equation d/d theta (ln L(theta)) = 0
(b) From the data of Example 4.6.2, compute the ML estimate, theta hat, to three decimal places. Note: the ML equation cannot be solved explicitly for theta hat, but it can be solved numerically, by an iterative method, or by trial and error.
Data: xi: 0.85, 1.08, 0.35, 3.28 1.24 2.58 0.02 0.13 0.22 0.52
yi: 0.02, 0.13, 0.22, 0.35, 0.52, 0.85, 1.08, 1.24 2.58, 3.28
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