Question

The cumulative probability for the Exponential distribution is 1−e−λx . Suppose that two variables V1 and V2 have exponential distributions with λ parameters of 1.0 and 2.0, respectively. Use a Gaussian copula to define the correlation structure between V1 and V2 with a copula correlation of –0.2. a. Produce a tablet. Use values of 0.25, 0.5, 0.75, 1, 1.25, and 1.5 for V1 and V2. What is the P(V1 < .75, V2 < 1.5)?

Answer 1