1. South Dakota School of Mines & Technology Estimation Industrial Engineering

2. Estimation Method of Moments Industrial Engineering

3. Method of Moments
Recall from Data Analysis, we had three measures for failure time data
s2 = X 1 . 19 =

4. Method of Moments
For Failure Time data, we now have three measures for the data
Exponential ??
s2 = X 1 . 19 =

5. Method of Moments
Recall that for the exponential distribution
m = 1/l
s2 = 1/l2
If E[ X ] = m and E [s2 ] = s2, then
1/l = 19.1 or
1/l2 = X 1 . 19 =
s2 = l
0524 . ˆ = l
0575 . ˆ =