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Textbook Expert
Textbook ExpertVerified Tutor
18 Nov 2021

Given information

The variable X representing the amount of change is exponentially distributed:

Step-by-step explanation

Step 1.

The cumulative distribution function representing P(X < x) is given by:

 

where is the decay parameter.

Since the distribution of the random variable in the problem is , it follows that . Therefore, the CDF of the random variable is:

   

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Introductory Statistics
OER Edition, 2013
Openstax
ISBN: 9781938168208

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