Question: Consider (Y 1 , Y 2 ,Y 3 ) be identical independent distributed random variables with Y i ----Type II Pareto (0, b i, a)

Consider (Y1,Y2,Y3) be identical independent distributed random variables with Yi ----Type II Pareto (0, bi, a) for i=1,2,3; and S = Y1+ Y2+ Y3 

(i) Find what conditions (about b1; b2; b3 and a) for it to holds that Cov[Y1,Y2 | S=s] ≤ 0 for any s

 

(ii) E[ Y1 | Y2=y2; S=s] decreases in y2 for any s

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