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( 2 marks) What is the Method of Moments for finding estimates of parameters of probability...

( 2 marks) What is the Method of Moments for finding estimates of parameters of probability distributions?

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Method of moments is an estimation procedure to get the estimate of the population parameters by expressing population moments as a function of parameters and equating them with the sample moments. Mathematically it can be written as

Suppose the problem is to estimate for the random variable X having distribution . Suppose the first k moments be expressed as a function of as

Let the sample moments based on n samples be given by

Then the method of moment estimator for is computed based on equating

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