Hi all, i have absolutely no idea what they have done in the solutions for this question, why can we not just take the log of the pdf? thanks molly
this is similar to april 2015 quest 7 part iii - is this out of scope? ive never seen something like this is the course notes
It is a function of a continuous random variable. If y=u(x) is such that a unique inverse x=w(y)=u^-1(y) exists and u(x) is an increasing function then F(y)=P(Y<y)=P[u(x)<y]=P[X<w(y)]=Fx[w(y)] and then we can differentiate to get to the PDF. It is assumed knowledge, it comes into the course in the inverse transform method. A2015 Q7 is in scope.