# Pareto distribution

• Apr 27th 2008, 11:23 PM
cirrus74
Pareto distribution
http://i235.photobucket.com/albums/e...untitled-8.jpg
http://i235.photobucket.com/albums/e.../untitled2.jpg

Need help on the Pareto distribution, please. Thanks!

I can get the mean loss amount $\frac {\alpha\beta}{\alpha-1}$ but I don't understand how to get (ii) and (iii)
• Apr 28th 2008, 12:32 AM
CaptainBlack
Quote:

Originally Posted by cirrus74
http://i235.photobucket.com/albums/e...untitled-8.jpg
http://i235.photobucket.com/albums/e.../untitled2.jpg

Need help on the Pareto distribution, please. Thanks!

I can get the mean loss amount $\frac {\alpha\beta}{\alpha-1}$ but I don't understand how to get (ii) and (iii)

ii) $\bar{x}=\int_{\beta}^{\infty} x f_X(x) ~dx$

iii) ${\rm{var}}(X)=\int_{\beta}^{\infty} (x-\bar{x})^2 f_X(x) ~dx$

Both of which look like elementary integrals to me.

RonL