X ~ Exp(theta). any loss over 10,000 will result in a claim payment of only 10,000 due to policy limits. you observe 4 claim payments: 1000, 3100, 7500, 10000. how would you calculate L(theta)?

• A. L(theta) = f(1000) * f(3100) * f(7500) * f(10000)
• B. L(theta) = f(1000) * f(3100) * f(7500) * F(10000)
• C. L(theta) = f(1000) * f(3100) * f(7500) * (1 - F(10000))
• D. L(theta) = f(1000) * f(3100) * f(7500) * F(10000) - f(10000)

Answer: (C)