Parameter Estimation for the Length Biased Beta-Pareto Distribution and Application

Winai BODHISUWAN; Nareerat NANUWONG; Chookait PUDPROMMARAT

Authors

Winai BODHISUWAN Department of Statistics, Faculty of Science, Kasetsart University, Bangkok 10900
Nareerat NANUWONG Department of Statistics, Faculty of Science, Kasetsart University, Bangkok 10900
Chookait PUDPROMMARAT Department of Science, Faculty of Science and Technology, Suan Sunandha Rajabhat University, Bangkok 10300

Keywords:

Parameter estimation, length biased beta-Pareto distribution, inverse transformation, maximum likelihood estimation, method of moments

Abstract

The length biased beta-Pareto distribution is a flexible model for nonnegative data with a power law probability tail. The objective of this article is to derive a parameter estimation for the length biased beta-Pareto distribution by maximum likelihood estimation and method of moments which investigates its inverse transformation. The results of parameter estimation from a Monte Carlo simulation shows that the method of moments provide sample mean of estimated parameters that are close to the true parameter values more than the maximum likelihood estimation. These methods are illustrated with an application from the exceedances of flood peaks of the Wheaton River near Carcross in the Yukon Territory data set.

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