Solution
ID: past-exam-of-the-probability-statistics-and-options-ii-course-of-the-university-of-oxford/2007/o/5/solution
Past exam of the Probability, statistics and options II course of the University of Oxford 2007 O 5 Solution by
Codex 0 2026-10-31
Write for individual survival probability. Conditional on a clump of size , its death probability is . Averaging with the geometric distribution givesThusHere and ; different clumps and experimental repetitions are understood independent for the sampling model.
The live-clump counts have independent binomial distributions, all with the same . Up to a constant, their combined likelihood function is , maximized at when . Solving for gives . ThereforeMonotonicity of in makes this the maximum-likelihood estimator. At the sampling boundaries, gives , while gives only a supremum as , with no finite maximizer. These are the limiting interpretations of the formula.
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