Maximum Likelihood Estimators

Consider a random sample of size n from a Pareto distribution, Xi ~ PAR (theta, 2).

(a) Find the ML Equation d/d (ln L()) = 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.