Let X1, . . ., Xn be a random sample from a Pareto distribution (named after the

Question:

Let X1, . . ., Xn be a random sample from a Pareto (named after the economist Vilfredo Pareto) with shape parameter a. The density function is given by

(The Pareto distribution is a skewed, heavy-tailed distribution. Sometimes it is used to model the distribution of incomes.) Show that the MLE of a is

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...