Two Cars and the Arrival Rate

Cars pass a roadside sensor as a Poisson process with unknown rate λ\lambda per second, so the gaps between arrivals are independent exponentials. You start watching at time zero. The first car passes at t=4t = 4 seconds and the second at t=10t = 10 seconds. (a) What is the maximum-likelihood estimate of λ\lambda? (b) Is that estimator unbiased? If not, produce one that is.

Answer

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