**5.1** . This is the cdf of the Pareto distribution. The pdf is .

**5.2** After three years, values are inflated by 1.331. Let *X* be the 1995 variable and *Y* = 1.331*X* be the 1998 variable. We want

Pr(*Y* > 500) = Pr(*X* > 500/1.331) = Pr(*X* > 376).

From the given information we have Pr(*X* > 350) = 0.55 and Pr(*X* > 400) = 0.50. Therefore, the desired probability must be between these two values.

**5.3** Inverse:

This is the inverse Pareto distribution with *τ = α* and *θ* = 1/*θ*. Transformed: . This is the Burr distribution with *α = α, γ = τ*, and *θ = θ*^{1/τ}. Inverse transformed:

This is the inverse Burr distribution with *τ = α, γ = τ* and *θ = θ*^{−1/τ}.

**5.4**

This is the loglogistic distribution with γ unchanged and *θ* = 1/*θ*.

**5.5**

which is the cdf of another lognormal ...

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