12.

The following data are generated randomly from a gamma distribution:

1.691 1.437 8.221 5.976

1.116 4.435 2.345 1.782
3.81 4.589 5.313 10.9
2.649 2.432 1.581 2.432
1.843 2.466 2.833 2.361

Compute the maximum-likelihood estimators 𝛽̂ and 𝜃̂.

You don't need to derive the maximum likelihood estimator. You can directly use the
estimators in table 9.3 maximum likelihood estimates of the gamma distribution

Solution:

The estimator 𝛽̂ for the gamma distribution is chosen by referring to Table A.9. Table
1
A.9 requires the computation of the quantity ,
𝑀
Where

1
𝑀 = ln 𝑋̅ − ∑𝑛𝑖=1 ln 𝑋𝑖 for n=20
𝑛

∑𝑛𝑖=1 𝑋𝑖
𝑋̅ =
𝑛

70.212
= = 3.5106
20
Then
ln 𝑋̅=ln 3.5106 = 1.25578

Next
20

∑ ln 𝑋𝑖
𝑖=1
So ln 𝑋̅ for the above table=

0.52532 0.362558 2.106692 1.787751

0.109751 1.489528 0.852285 0.577736
1.337629 1.523662 1.670157 2.388763
0.974182 0.888714 0.458058 0.888714
0.611395 0.902597 1.041336 0.859085

20

∑ ln 𝑋𝑖 = 21.3559
𝑖=1

Then
𝑛
1
𝑀 = ln 𝑋̅ − ∑ ln 𝑋𝑖
𝑛
𝑖=1

1
𝑀 = 1.25578 − (21.3559)
20

𝑀 = 1.25578 − 1.067795 = 0.187985

1 1
The quantity = ≈≈ 5.3196
𝑀 0.187985

From the table 9.3, 𝛽̂ ≈ 2.815

Also, 𝜃̂ is given by

1 1
𝜃̂ = = ≈ 0.2846637
𝑋̅ 3.5106