The Joint Distribution of the Sum and the Maximum of IID Exponential Random Variables
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The authors establish the joint distribution of the sum X and the maximum Y of IID exponential random variables. They derive exact formuli describing the random vector (X,Y), including its joint PDF, CDF, and other characteristics; marginal and conditional distributions; moments and related parameters; and stochastic representations leading to further properties of infinite divisibility and self-decomposability. The authors also discuss parameter estimation and include an example from climatology that illustrates the modeling potential of this new bivariate model.