How do you derive the mean of generalised pareto distribution?

You must know calculus, at least that the integral of xN = 1/(N+1)xN+1 . Define the Pareto distribution as: f(x) = abax-(a+1) or Cx-(a+1) where C = aba (a constant) Remember that the pdf is defined...

This means the average deviation from the average. So first find the average. Then, one by one for each item, find the difference of the item from your average. Ignore the sign when the difference is...

It explains. "They derived the formula" or in other words "they broke it down and understood the formula"

Use the following integral to find the first and second moments. The mean is, of course, the first moment and the variance is the second moment minus the first moment...

var(X) = (xm/a - 1)2 a/a-2 .If a < or equal to 2, the variance does not exist.