Exponential Distribution — $ \mathrm{Exp}(\lambda) $

Definition

Parameters:

  • Rate $ \lambda > 0 $

Support:
\(x \ge 0\)

PDF:
\(f(x \mid \lambda) = \lambda e^{-\lambda x}, \quad x \ge 0\)

CDF:
\(F(x)=1-e^{-\lambda x}\)


Moment Generating Function (MGF) and Characteristic Function

MGF:
\(M_X(t) = \frac{\lambda}{\lambda - t}, \quad t < \lambda\)

Characteristic Function:
\(\varphi_X(t) = \frac{\lambda}{\lambda - it}\)

Key consequence:

  • All moments exist
  • Radius of convergence $ t < \lambda $

Moments

Raw Moments

\(\mathbb{E}[X^k] = \frac{k!}{\lambda^k}, \quad k \ge 1\)

Central Moments

\(\mathbb{E}[X]=\frac{1}{\lambda}, \quad \operatorname{Var}(X)=\frac{1}{\lambda^2}\)

Skewness $=2$, kurtosis $=9$.


Memoryless Property

\[\mathbb{P}(X > s+t \mid X > s) = \mathbb{P}(X > t) \quad \forall s,t \ge 0\]

Equivalent characterization:
The Exponential is the only continuous distribution on $ [0,\infty) $ with this property.


Lack of Memory and Stopping Times

If $ T \sim \mathrm{Exp}(\lambda) $ and $ \mathcal{F}_t $ is the natural filtration, \(\mathbb{P}(T > s+t \mid \mathcal{F}_s, T > s) = \mathbb{P}(T > t)\)

Use in proofs:

  • Strong Markov property
  • Renewal arguments
  • Optional stopping constructions

Linear Transformations

If $ X \sim \mathrm{Exp}(\lambda) $, then \(cX \sim \mathrm{Exp}(\lambda/c), \quad c>0\)

Thus Exponential is a scale family.


Closure Properties

Convolution

If $ X_1,\dots,X_n \stackrel{iid}{\sim} \mathrm{Exp}(\lambda) $, \(\sum_{i=1}^n X_i \sim \mathrm{Gamma}(n,\lambda)\)

Special case:

  • Waiting time for the $ n $-th Poisson event

Minimum of Independent Exponentials

If $ X_i \sim \mathrm{Exp}(\lambda_i) $, independent, then \(\min_i X_i \sim \mathrm{Exp}\!\left(\sum_i \lambda_i\right)\)

Moreover, \(\mathbb{P}(X_k = \min_i X_i) = \frac{\lambda_k}{\sum_i \lambda_i}\)

Key use:
Competing risks, Poisson thinning, CTMC jump times.


Exponential Family Representation

\[f(x) = \exp\!\left( \log \lambda - \lambda x \right) \mathbb{1}_{x\ge 0}\]
  • Natural parameter: $ \eta = -\lambda $
  • Sufficient statistic: $ \sum X_i $
  • Minimal and complete

Likelihood and Estimation

Likelihood

\(\ell(\lambda) = n\log\lambda - \lambda \sum x_i\)

Maximum Likelihood Estimator

\(\hat{\lambda} = \frac{n}{\sum X_i} = \frac{1}{\bar{X}} \quad \text{(biased)}\)


Fisher Information and CRLB

Fisher Information: \(I(\lambda)=\frac{n}{\lambda^2}\)

Cramér–Rao Lower Bound: \(\operatorname{Var}(\hat{\lambda}) \ge \frac{\lambda^2}{n}\)


Bayesian Structure

Conjugate Prior

\[\lambda \sim \mathrm{Gamma}(\alpha,\beta)\]

Posterior

\[\lambda \mid X \sim \mathrm{Gamma} \left( \alpha+n,\; \beta+\sum X_i \right)\]

Relationship to Poisson Process

If events occur according to a Poisson process with rate $ \lambda $:

  • Interarrival times are i.i.d. $ \mathrm{Exp}(\lambda) $
  • Waiting time to the $ n $-th event is $ \mathrm{Gamma}(n,\lambda) $

Key Theorems and Facts (Prelim-Relevant)

  • Uniqueness of memoryless property
  • Minimum of exponentials
  • Connection to Poisson processes
  • Conjugacy with Gamma
  • Sufficient statistics via exponential family

Exam Takeaways

  • Memoryless ⇒ exponential
  • Min of exponentials ⇒ sum of rates
  • Sums ⇒ Gamma
  • Stopping times often hide exponentials
  • Always check scale transformations

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