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Maximum likelihood when some data are censored

You study how long positions stay open before being closed, modeling durations as exponential with rate λ\lambda. When your observation window ends, some positions are still open, you only know each such duration exceeded its window length cjc_j. These are right-censored.

Write the correct likelihood and derive the MLE of λ\lambda, and explain why dropping the censored points is wrong.

Your answer

This one is open-ended. Work it through, then check your reasoning against the full solution.

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