Question: The Pareto distribution has density function OL/x1+0 for x > L where 0 is a positive parameter. A random sample of size n is available

The Pareto distribution has density function OL/x1+0 for x > L where 0 is a positive parameter. A random sample of size n is available from a Pareto distribution with L = 1. Show there exists a sufficient statistic, and if the prior distribution of In0 is uniform, show that the posterior distribution of 0 is I(n, nlnz), where z is the geometric mean of the observations. Hence describe how confidence limits for can be obtained.

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