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The following claim data were generated from a Pareto distribution: 1 3 0 , 2 0 , 3 5 0 , 2 1 8 ,
The following claim data were generated from a Pareto distribution:
For integer k
the k
th moment of a Pareto distribution with parameters alpha
and theta
is
theta kkalpha alpha alpha k
Using the method of moments, determine the estimate of theta
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