Solution

ID: past-exam-of-the-options-ii-course-of-the-university-of-oxford/2012/o/o4/c/i/solution

For the shifted exponential model, for . It is increasing, so the probability integral transform preserves order: . The expected uniform plotting positions are by part (b). Replacing the random transformed order statistic by this representative position gives
Thus plotting against should give an approximate line with intercept one and slope .
The replacement is a quantile-plot approximation, not an assertion that expectation commutes exactly with the nonlinear inverse distribution function. The random points need not lie exactly on the line.

New to topics? Read the docs here!