Let X have the Pareto pdf æk+1 x > 0 f(x; k, 0) = x < 0 introduced in Exercise 10. a. If k > 1, compute E(X). b. What can you say about E(X) if k = 1? c. If k > 2, show that V(X) = ko² (k – 1) (k – 2)¯1. d. If k = 2, what can you say about V(X)? e. What conditions on k are necessary to ensure that E(X") is finite?

Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter4: Eigenvalues And Eigenvectors
Section4.6: Applications And The Perron-frobenius Theorem
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Let X have the Pareto pdf
æk+1
x > 0
f(x; k, 0) =
x < 0
introduced in Exercise 10.
a. If k > 1, compute E(X).
b. What can you say about E(X) if k = 1?
c. If k > 2, show that V(X) = ko² (k – 1) (k – 2)¯1.
d. If k = 2, what can you say about V(X)?
e. What conditions on k are necessary to ensure that E(X") is finite?
Transcribed Image Text:Let X have the Pareto pdf æk+1 x > 0 f(x; k, 0) = x < 0 introduced in Exercise 10. a. If k > 1, compute E(X). b. What can you say about E(X) if k = 1? c. If k > 2, show that V(X) = ko² (k – 1) (k – 2)¯1. d. If k = 2, what can you say about V(X)? e. What conditions on k are necessary to ensure that E(X") is finite?
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