e, both > 0, and the pdf is as follows. k- ek f(x; k, 8) = {k +1 x 2 0 O Sketch the graph of f(x; k, 0). f(x) f(x) k f(x) f(x) k O Verify that the total area under the graph equals 1. 'k • gk dx = xk +1 =0 -0 ) If the rv X has pdf f(x; k, 0), for any fixed b > 8, obtain an expression for P(X s ). O For 0

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A family of pdfs that has been used to approximate the distribution of income, city population size, and size of firms is the Pareto family. The family has two parameters, k
and 0, both > 0, and the pdf is as follows.
k. ek
f(x; k, 8) = {k + 1
x 20
x< 6
(a) Sketch the graph of f(x; k, 0).
f(x)
f(x)
k
f(x)
f(x)
k
(b) Verify that the total area under the graph equals 1.
°k. ek
dx =
xk + 1
=0 - ek
(c) If the rv X has pdf f(x; k, 0), for any fixed b > 0, obtain an expression for P(X s b).
(d) For 0 <a <b, obtain an expression for the probability P(a sX s b).
Transcribed Image Text:A family of pdfs that has been used to approximate the distribution of income, city population size, and size of firms is the Pareto family. The family has two parameters, k and 0, both > 0, and the pdf is as follows. k. ek f(x; k, 8) = {k + 1 x 20 x< 6 (a) Sketch the graph of f(x; k, 0). f(x) f(x) k f(x) f(x) k (b) Verify that the total area under the graph equals 1. °k. ek dx = xk + 1 =0 - ek (c) If the rv X has pdf f(x; k, 0), for any fixed b > 0, obtain an expression for P(X s b). (d) For 0 <a <b, obtain an expression for the probability P(a sX s b).
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