Exponentially distributed with paramaters
Let X1 and X2 be independent as well as exponentially distributed with paramaters L1 and L2, respectively, and let Y=min(X1,X2). That is, Y is the smaller of the two. What is the pdf of Y?
Hint: Start with the cdf of Y.
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A multiplicative demand function of the form: Qd = aPb1Yb2Pob3 is estimated using cross-sectional data and 224 observations.
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