Suppose that X and Y are independent random variables, X has the gamma distribution with parameters 1

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Suppose that X and Y are independent random variables, X has the gamma distribution with parameters α1 and β, and Y has the gamma distribution with parameters α2 and β. Let U = X/(X + Y) and V = X + Y. Show that (a) U has the beta distribution with parameters α1 and α2, and (b) U and V are independent. Look at the steps in the proof of Theorem 5.8.1.
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...
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Probability And Statistics

ISBN: 9780321500465

4th Edition

Authors: Morris H. DeGroot, Mark J. Schervish

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