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Math 6010 • Linear Models

Fall 2008 • Question 5

The number of customers entering a store on a given day is a Poisson random variable with parameter \(\theta \). The money spent by a customer is uniformly distributed on \([0,\eta ]\). The number of customers and the money spent in the store are independent. We observe \(Z_1,Z_2,\ldots ,Z_n\), the total spending (the money collected by the store) on \(n\) days. We can assume that \(Z_1,Z_2,\ldots ,Z_n\) are independent.

a. Provide estimators for \(\theta \) and \(\eta \) using the method of moments. (10 points)

b. Provide estimators for \(\theta \) and \(\eta \) using the likelihood method. (10 points)

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The number of customers entering a store on a given day is a
Poisson random variable with parameter \(\theta\). The money spent by a customer
is uniformly distributed on \([0,\eta]\). The number of customers and the money
spent in the store are independent. We observe \(Z_1,Z_2,\ldots,Z_n\), the total
spending (the money collected by the store) on \(n\) days. We can assume that
\(Z_1,Z_2,\ldots,Z_n\) are independent.

a. Provide estimators for \(\theta\) and \(\eta\) using the method of moments.
(10 points)

b. Provide estimators for \(\theta\) and \(\eta\) using the likelihood method.
(10 points)