Let X∼Pareto(xm,α)X \sim \text{Pareto}(x_m, \alpha)X∼Pareto(xm,α) with minimum xm=1x_m = 1xm=1 and shape α=2\alpha = 2α=2. Does Var(X)Var(X)Var(X) exist?
No, variance is infinite for α≤2\alpha \le 2α≤2
Yes, Var(X)=1Var(X) = 1Var(X)=1
Yes, Var(X)=2Var(X) = 2Var(X)=2
Undefined