I need help with answering a question:
A pseudo-random number generates uniformly distributed random variables Xi on the interval [0,1]. This random number generator is to be used to produce random variables Yi, which have a Pareto distribution, described by
Probability density function:
p(y) = 0 where y < k
p(y) = ak^a/y^(a+1) where y >= k
Cumulative distribution function:
P(Y<=y) = 0 where y < k
P(Y<=y) = 1 - (k/y)^a where y >= k
with parameters a = 1.5 and k = 1.0
What value of Yi would correspond to an Xi value of 0.821? Explain your derivations.
==end of question==
Any help with this would be much appreciated.