A study of the effect of loss functions on the Bayes estimates of dynamic cumulative residual entropy for Pareto distribution under upper record values. Issue 2 (22nd January 2016)

• Record Type: Journal Article
• Authors: Renjini, K.R.; Abdul-Sathar, E.I.; Rajesh, G.
• Is Part Of: Journal of statistical computation and simulation. Volume 86:Issue 2(2016)
• Page Start: 324
• Page End: 339
• Publication Date: 2016-01-22
• Subjects: Bayesian estimation -- dynamic cumulative residual entropy -- priors -- loss functions -- upper record values; Mathematical statistics -- Data processing -- Periodicals; Digital computer simulation -- Periodicals; 519.5028505
• DOI: 10.1080/00949655.2015.1007986
• Languages: English
• ISSNs: 0094-9655

Abstract

Abstract : Most of the data arising in reliability can be modelled by Pareto distribution. In the present paper, we proposed the Bayes estimation of dynamic cumulative residual entropy for the classical Pareto distribution under upper record values. This measure performs important roles in reliability and survival analysis to model and analyse the data. A class of informative and non-informative priors has been assumed to derive the corresponding posterior distributions. The Bayes estimators (BEs) and the associated posterior risks have been calculated under different symmetric and asymmetric loss functions. We demonstrate the use of the proposed Bayesian estimation procedure with the average July temperatures data of Neuenburg, Switzerland, during the period 1864–1993. The performance of the BEs has been evaluated and compared under a comprehensive simulation study. The purpose is to find out the combination of a loss function and a prior having the minimum Bayes risk and hence producing the best results.