The exponential distribution is f (x; λ) = λe−λx and E(X) = λ −1. The cumulative distribution function is F(x) = P(X ≤ x) = 1 − e−λx . Three observations are made by an instrument that reports x1 = 5 and x2 = 3, but x3 is too large for the instrument to measure and it reports only that x3 > 10. (The largest value the instrument can measure is 10.0.)
a. What is the likelihood function?
b. What is the mle of λ?
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