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MLE of a Pareto Tail Index

题目

Suppose large execution slippage magnitudes are modeled as Pareto with known scale xm=1x_m=1 and unknown tail index α\alpha, so the density is f(x)=αxα1,x1.f(x)=\alpha x^{-\alpha-1}, \qquad x\ge 1. If n=8n=8 observations satisfy i=18logXi=12,\sum_{i=1}^8 \log X_i = 12, find the MLE of α\alpha. Then estimate P(X>10)P(X>10) under the fitted model.

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MLE of alpha

P(X>10)