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If Y has a geometric distribution with probability of success p, show that the moment-generating function for Y is

User FTW
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Answer:

M₀ (t) = p / e^-t -q = p (e^-t -q) ^ -1

Explanation:

Let the random variable Y have a geometric distribution g (y;p) = pq y-¹

The m.g.f of the geometric distribution is derived as below

By definition , M₀ (t) = E (e^ ty) = ∑ (e^ ty )( q ^ y-1)p ( for ∑ , y varies 1 to infinity)

= pe^t ∑(e^tq)^y-1

= pe^t/1- qe^t, where qe^t <1

In order to differentiate the m.g.f we write it as

M₀ (t) = p / e^-t -q = p (e^-t -q) ^ -1

M₀` (t) = pe^-t (e^-t -q) ^ -2 and

M₀^n(t) = 2pe^-2t (e^-t -q) ^ -3 - pe^-t (e^-t -q) ^ -2

Hence

E (y) = p (1-q)-² = 1/p

E (y²) =2 p (1-q)-³ - p (1-q)-²

= 2/p² - 1/p and

σ² = [E (y²) -E (y)]²

= 2/p² - 1/p - (1/p)²

= q/p²

User Ridwan
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