Friday, November 23

Generating Function Method

Introduction for generating function method:

In generating function method, a moment generating function is a real valued function from which one can generate all the moments of a given random variable. In many cases, it is easier to compute various moments of X using the moment generating function.

In other words, the moment generation function may be considered an expression containing all the moment of a probability distribution function, p(|x).

Definition for Generating Function Method:

In generating function method, Let X be a random variable whose probability density function is f(x). A real valued function M : `RR` `->` `RR` defined by

M(t) = E(`e^(tX)`)

is called the moment generating function of X if this expected value exists for all t in the interval −h < t < h for some h > 0.

In general, not every random variable has a moment generating function. But if the moment generating function of a random variable exists, then it is unique. At the end of this section, we will give an example of a random variable, which does not have a moment generating function or generating function method,

Using the definition of expected value of a random variable, we obtain the explicit representation for M(t) as

`M_x`(t) `=`  E(`e^(tX)`) `=` `sum_x` `e^(tx)` f (x)

if X is a discrete random variable and

`M_x(t)` `=`  E(`e^(tX)`) `=`int_(-oo)^(oo)` `e^(tx)` f(x) dx

if X is a continuous random variable.Having problem with free homework help math keep reading my upcoming posts, i will try to help you.

Example for Generating Function Method:

In generating function method, let X is a random variable whose moment generating function is M(t) and n be any natural number. What is the nth derivative of M(t) at t = 0?

Solution:

`d/(dt)`M(t) `=` `d/(dt)` E(`e^(tX)`)

`=` E(`d/(dt)` `xx` `e^(tX)`)

`=` E(`X` `e^(tX)`).

Similarly,

`((d)^(2))/(d(t)^(2))`M(t)         `=` `((d)^(2))/(d(t)^(2))` E(`e^(tX)`)

`=` E(`((d)^(2))/(d(t)^(2))` `xx` `e^(tX)`)

`=`  E(`X^2` `e^(tX)`).

Hence, in general we get

`((d)^(n))/(d(t)^(n))`M(t)         `=` `((d)^(2))/(d(t)^(2))` E(`e^(tX)`)

`=` E(`((d)^(n))/(d(t)^(n))` `xx` `e^(tX)`)

`=`  E(`X^n` `e^(tX)`).

If we set t`=` 0 in the `n^("th")` derivative, we get

`((d)^(n))/(d(t)^(n))`M(t) `|_(t=0)` `=` E(`X^n` `e^(tX)` `|_(t=0)` `=` E(`X^n`).

Hence the `n^("th")` derivative of the moment generating function of X evaluated at t= 0 is the `n^("th")` moment of X about the origin.

In generating function method, this example tells us if we know the moment generating function of a random variable; then we can generate all the moments of X by taking derivatives of the moment generating function and then evaluating them at zero.

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