A day without calls
A desk receives a number of calls each day that follows a Poisson distribution with unknown mean , independently across days. Over five days you count
Find the maximum likelihood estimate of the probability that a day has no calls at all.
Fractions, decimals with at least 3 significant digits, and expressions such as sqrt(2)/2, e^-1 or pi/4.
First find the maximum likelihood estimate of . Then use the fact that the MLE of a function of a parameter is that function of the MLE.
The probability of no calls is .
h
s Shown after a correct answer. Revealing it first marks the problem as seen, not solved.
Idea. Estimate by maximum likelihood, then plug it into . The invariance property of the MLE says this is the MLE of itself, which is not the same as the fraction of days with no calls.
Step 1: likelihood. For counts ,
Step 2: maximise. Setting the derivative to zero gives , so .
Step 3: invariance. is a one-to-one function of , so its MLE is
Comparison. The naive estimate, the fraction of observed days with no calls, is . It ignores the Poisson model. The MLE uses all five counts and is far less noisy, though it is slightly biased (by Jensen's inequality, ).