It is said that a random variable X has the Pareto distribution with parameters x0 and (x0 0 and 0) if X has a continuous distribution for which the p d f f (x x0, ) is as follows Show that if X has this Pareto distribution, then the random variable log(X x0) has the exponential distribution with p...

It is said that a random variable X has the Pareto distribution with parameters x0 and

Question:

It is said that a random variable X has the Pareto with parameters x0 and Î± (x0 > 0 and Î± > 0) if X has a continuous for which the p.d.f. f (x|x0, Î±) is as follows:

Show that if X has this Pareto distribution, then the random variable log(X/x0) has the exponential distribution with parameter Î±.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...