Assume that xo > 0 is given and that X1, X2, • ·• , Xn is an i.i.d. sample. Find the MLE of

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EXCERSISE The Pareto distribution has been used in cconomics as a model for a density
function with a slowly decaying tail:
0>1
f(r|xo, 0) = 0x% 0-1,
a 2 0,
Assume that xo > 0 is given and that X1, X2, · · · , X, is an i.i.d. sample. Find the MLE of
0.
Transcribed Image Text:EXCERSISE The Pareto distribution has been used in cconomics as a model for a density function with a slowly decaying tail: 0>1 f(r|xo, 0) = 0x% 0-1, a 2 0, Assume that xo > 0 is given and that X1, X2, · · · , X, is an i.i.d. sample. Find the MLE of 0.
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