A new improved form of the Lomax model: Its bivariate extension and an application in the financial sector
The Lomax model, also known as Pareto Type-II, has broad feasibility, especially in financing. This work introduces a new generalization of the Lomax model called the arc-sine exponentiation Lomax, which helps consider economic phenomena. The arc-sine exponentiation Lomax distribution captures a var...
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| Format: | Article |
| Language: | English |
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Elsevier
2023-07-01
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| Series: | Alexandria Engineering Journal |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S1110016823003861 |
| _version_ | 1797790823284211712 |
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| author | Mustafa Kamal Ramy Aldallal Said G. Nassr Aned Al Mutairi M. Yusuf Manahil SidAhmed Mustafa Meshayil M. Alsolmi Ehab M. Almetwally |
| author_facet | Mustafa Kamal Ramy Aldallal Said G. Nassr Aned Al Mutairi M. Yusuf Manahil SidAhmed Mustafa Meshayil M. Alsolmi Ehab M. Almetwally |
| author_sort | Mustafa Kamal |
| collection | DOAJ |
| description | The Lomax model, also known as Pareto Type-II, has broad feasibility, especially in financing. This work introduces a new generalization of the Lomax model called the arc-sine exponentiation Lomax, which helps consider economic phenomena. The arc-sine exponentiation Lomax distribution captures a variety of shapes of density and hazard functions. The estimators of the proposed model’s parameters are derived using the maximum likelihood method. In a simulation study, the accuracy and efficacy of estimators are evaluated by computing their mean square errors and biases.Furthermore, a bivariate extension of the arc-sine exponentiation Lomax model is also introduced. The bivariate extension is introduced using Farlie–Gumble–Morgenstern copula approach. The new bivariate model is called Farlie–Gumble–Morgenstern arc-sine exponentiation Lomax distribution. Finally, a data set of thirty-two observations representing the export of goods demonstrates the arc-sine exponentiation Lomax model. The best-fitting results of the arc-sine exponentiatial Lomax are compared with some prominent extensions of the Lomax distribution. |
| first_indexed | 2024-03-13T02:10:01Z |
| format | Article |
| id | doaj.art-5451765770d3468a9d3a805b3e907940 |
| institution | Directory Open Access Journal |
| issn | 1110-0168 |
| language | English |
| last_indexed | 2024-03-13T02:10:01Z |
| publishDate | 2023-07-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Alexandria Engineering Journal |
| spelling | doaj.art-5451765770d3468a9d3a805b3e9079402023-07-01T04:34:24ZengElsevierAlexandria Engineering Journal1110-01682023-07-0175127138A new improved form of the Lomax model: Its bivariate extension and an application in the financial sectorMustafa Kamal0Ramy Aldallal1Said G. Nassr2Aned Al Mutairi3M. Yusuf4Manahil SidAhmed Mustafa5Meshayil M. Alsolmi6Ehab M. Almetwally7Department of Basic Sciences, College of Science and Theoretical Studies, Saudi Electronic University, Dammam 32256, Saudi ArabiaDepartment of Accounting, College of Business Administration in Hawtat Bani Tamim, Prince Sattam bin Abdulaziz University, Saudi ArabiaDepartment of Statistics and Insurance, Faculty of Commerce, Arish University, Al-Arish 45511, EgyptDepartment of Mathematical Sciences, College of Science, Princess Nourah bint Abdulrahman University, P.O. Box 84428, Riyadh 11671, Saudi Arabia; Corresponding author.Helwan University, Faculty of Science, Department of Mathematics, EgyptDepartment of Statistics, Faculty of Science, University of Tabuk, Tabuk, Saudi ArabiaCollege of Science and Arts at Khulis, Department of Mathematics, University of Jeddah, Jeddah, Saudi ArabiaFaculty of Business Administration, Delta University for Science and Technology, Gamasa 11152, EgyptThe Lomax model, also known as Pareto Type-II, has broad feasibility, especially in financing. This work introduces a new generalization of the Lomax model called the arc-sine exponentiation Lomax, which helps consider economic phenomena. The arc-sine exponentiation Lomax distribution captures a variety of shapes of density and hazard functions. The estimators of the proposed model’s parameters are derived using the maximum likelihood method. In a simulation study, the accuracy and efficacy of estimators are evaluated by computing their mean square errors and biases.Furthermore, a bivariate extension of the arc-sine exponentiation Lomax model is also introduced. The bivariate extension is introduced using Farlie–Gumble–Morgenstern copula approach. The new bivariate model is called Farlie–Gumble–Morgenstern arc-sine exponentiation Lomax distribution. Finally, a data set of thirty-two observations representing the export of goods demonstrates the arc-sine exponentiation Lomax model. The best-fitting results of the arc-sine exponentiatial Lomax are compared with some prominent extensions of the Lomax distribution.http://www.sciencedirect.com/science/article/pii/S1110016823003861Lomax distributionArc-sine exponentiatial-X distributionsEstimationSimulation studyExport of goods |
| spellingShingle | Mustafa Kamal Ramy Aldallal Said G. Nassr Aned Al Mutairi M. Yusuf Manahil SidAhmed Mustafa Meshayil M. Alsolmi Ehab M. Almetwally A new improved form of the Lomax model: Its bivariate extension and an application in the financial sector Alexandria Engineering Journal Lomax distribution Arc-sine exponentiatial-X distributions Estimation Simulation study Export of goods |
| title | A new improved form of the Lomax model: Its bivariate extension and an application in the financial sector |
| title_full | A new improved form of the Lomax model: Its bivariate extension and an application in the financial sector |
| title_fullStr | A new improved form of the Lomax model: Its bivariate extension and an application in the financial sector |
| title_full_unstemmed | A new improved form of the Lomax model: Its bivariate extension and an application in the financial sector |
| title_short | A new improved form of the Lomax model: Its bivariate extension and an application in the financial sector |
| title_sort | new improved form of the lomax model its bivariate extension and an application in the financial sector |
| topic | Lomax distribution Arc-sine exponentiatial-X distributions Estimation Simulation study Export of goods |
| url | http://www.sciencedirect.com/science/article/pii/S1110016823003861 |
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