An insurance company has taken an individual excess of loss reinsurance contact with a retention limit of 8 000. Gross individual claim amounts are believed to follow an exponential distribution with parameter . The following claims data are observed: Claims below retention: 2 444, 2 086, 7 367, 2 925, 7 386, 2 641, 5 701

Claims above retention: 3 in total

Estimate using:

(a) maximum likelihood estimation [4]

(b) method of percentiles