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If \({\rm{X}}\) has an exponential distribution with parameter \({\rm{\lambda }}\), derive a general expression for the \({\rm{(100p)}}\)th percentile of the distribution. Then specialize to obtain the median.

Short Answer

Expert verified

The general expression is \({\eta _p} = - \frac{{\ln (1 - p)}}{\lambda }\;\;\;and\;\;\;\tilde \mu = \frac{{0.693}}{\lambda }\).

Step by step solution

01

Concept Introduction

Percentile is calculated by the ratio of the number of values below 'x' to the total number of values. The Percentile Formula is given as, Percentile (P)=(Number of Values Below 鈥渪鈥 Total Number of Values)脳100.

02

Determine the expression

The exponential distribution of \(X\)with the parameter \(\lambda \) is assumed. The exponential distribution cdf can therefore be represented as

\(F(X;\lambda ) = \left\{ {\begin{array}{*{20}{l}}0&{y < 0}\\{1 - {e^{ - \lambda y}}}&{y \ge 0}\end{array}} \right.\)

By \({\eta _p}\), we can designate the \(100{p^{th}}\)percentile. Then we are aware that

\(F\left( {{\eta _p}} \right) = p\)

\(1 - {e^{ - \lambda {\eta _p}}} = p\)

\({e^{ - \lambda {\eta _p}}} = 1 - p\)

\({\eta _p} = - \frac{{\ln (1 - p)}}{\lambda }\)

We know that the meadin \((\tilde \mu )\) percentile of the distribution is \({50^{{\rm{th }}}}\).

\(\tilde \mu = - \frac{{\ln (1 - 0.5)}}{\lambda }\)

\(\tilde \mu = \frac{{0.693}}{\lambda }\)

Definition: Let \(p\)be a number between 0 and 1. The \({(100p)^{th}}\)percentile of the distribution of a continuous rv \(X\), denoted by \({\eta _p}\)), is defined by

\(p = F\left( {{\eta _p}} \right) = \int_{ - \infty }^{{\eta _p}} f (y)dy\)

For median: \({\bf{p}} = 0.5\)

Therefore, the general expression is \({\eta _p} = - \frac{{\ln (1 - p)}}{\lambda }\;\;\;and\;\;\;\tilde \mu = \frac{{0.693}}{\lambda }\).

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