The Pareto distribution is often used to model income distribution Suppose that in some economy the income distribution does follow a Pareto distribution with k 3 Suppose that the mean income is $20,000 (a) Find M and C (b) Find the variance (2 (c) Find the fraction of income earners who earn more ...

We use the results from problem 34 a To have a probabili ...

The Pareto distribution is often used to model income distribution. Suppose that in some economy the income

Question:

The Pareto is often used to model income Suppose that in some economy the income does follow a Pareto with k = 3. Suppose that the mean income is $20,000?
(a) Find M and C.
(b) Find the variance (2.
(c) Find the fraction of income earners who earn more than $100.000. (This is the same as asking what is the probability that a randomly chosen person has an income of more than $100,000.) Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...