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Assignment 3MATBUS 472Due April 2 at the beginning of class1.The probability density function for an exponential distribution ise-xwhere x is thevalue of the variable and _ is a parameter. The cumulative probability distribution is 1−e-x. Suppose that two variables V1and V2have exponential distributions withparameters of 1.0 and 2.0, respectively. Use a Gaussian copula to define thecorrelation structure between V1and V2with a copula correlation of–0.2. Produce atable similar to Table 11.3 using values of 0.25, 0.5, 0.75, 1, 1.25, and 1.5 for V1and V2.A spreadsheet for calculating the cumulative bivariate normal distribution is on theauthor’s website:ronto.ca/∼hull.The probability thatV1< 0.25 is 1–e−1.0×0.25= 0.221. The probability thatV2< 0.25 is 1–e−2.0×0.25= 0.393. These are transformed to the normal variates–0.768 and–0.270.Using the Gaussian copula model the probability thatV1< 0.25 andV2< 0.25 isM(−0.768,−0.270,−0.2) = 0.065. The other cumulative probabilities are shown in thetable below and are calculated similarly.