Estimate the variance of the estimators and construct normal and non-normal confidence intervals.
Free SOA Exam ASTAM (Advanced Short-Term Actuarial Mathematics) lesson in Construction and Selection of Parametric Models. 19 min read, ~2,879 words.
Score equation: The MLE solves. Write, log, differentiate, set to zero, solve. Variance from Fisher information:, observed or expected information matrix. Delta method for transformed estimators:. Wald CI (normal):. Symmetric, can cross zero for positive parameters. Log-transform CI for: build on, exponentiate. Always positive, asymmetric. LR CI: keep all with...
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What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 4b
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