Suppose Y1,...,YNare independent random variables, each with the Pareto distribution and
E(Yi) = (ß0+ ß1xi)2
Is this a generalized linear model? Give reasons for your answer.
This is what I know:
I know that the Pareto distribution is part of the exponential family. So, it meets the first criteria for a generalized linear model.
However, I cannot figure out if this question is canonical, natural, or neither. For example, I know some exponential families are not in the exponential dispersion family used in generalized linear models unless a scale parameter is added and interpreted as a dispersion parameter.
This is what I need help with:
Please explain if this question is canonical, natural, or neither and to recognize the difference.Thanks!
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