Suppose a particular state allows individuals filing tax returns to itemize deductions only if the total of all itemized deductions is at least $5000. Let X (in 1000s of dollars) be the total of itemized deductions on a randomly chosen form. Assume that X has the pdf
a. Find the value of k. What restriction on a is necessary?
b. What is the cdf of X?
c. What is the expected total deduction on a randomly chosen form? What restriction on a is necessary for E(X) to be finite? d. Show that ln(X/5) has an exponential distribution with parameter α = 1.