IDEAS home Printed from https://ideas.repec.org/a/vrs/stintr/v21y2020i5p61-81n1.html
   My bibliography  Save this article

A new generalization of the Pareto distribution and its applications

Author

Listed:
  • Almetwally Ehab M.

    (Faculty of Business Administration, Delta University of Science and Technology, ozoro, ; Egypt .)

  • Haj Ahmad Hanan A.

    (Department of Basic Science, Preparatory Year Deanship, King Faisal University, Hofuf, Al -Ahsa, 31982, Saudi Arabia)

Abstract

This paper introduces a new generalization of the Pareto distribution using the Marshall-Olkin generator and the method of alpha power transformation. This new model has several desirable properties appropriate for modelling right skewed data. The Authors demonstrate how the hazard rate function and moments are obtained. Moreover, an estimation for the new model parameters is provided, through the application of the maximum likelihood and maximum product spacings methods, as well as the Bayesian estimation. Approximate confidence intervals are obtained by means of an asymptotic property of the maximum likelihood and maximum product spacings methods, while the Bayes credible intervals are found by using the Monte Carlo Markov Chain method under different loss functions. A simulation analysis is conducted to compare the estimation methods. Finally, the application of the proposed new distribution to three real-data examples is presented and its goodness-of-fit is demonstrated. In addition, comparisons to other models are made in order to prove the efficiency of the distribution in question.

Suggested Citation

  • Almetwally Ehab M. & Haj Ahmad Hanan A., 2020. "A new generalization of the Pareto distribution and its applications," Statistics in Transition New Series, Polish Statistical Association, vol. 21(5), pages 61-81, January.
    • Handle: RePEc:vrs:stintr:v:21:y:2020:i:5:p:61-81:n:1
    DOI: 10.21307/stattrans-2020-055
    as

    Download full text from publisher

    File URL: https://doi.org/10.21307/stattrans-2020-055
    Download Restriction: no
    File URL: https://libkey.io/10.21307/stattrans-2020-055?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:stintr:v:21:y:2020:i:5:p:61-81:n:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.