Inference Based on New Pareto-Type Records With Applications to Precipitation and Covid-19 Data

Abstract

We consider estimation and prediction of future records based on observed records from the new Pareto type distribution proposed recently by Bourguignon et al. (2016), ¡°M. Bourguignon, H. Saulo, R. N. Fernandez, A new Pareto-type distribution with applications in reliability and income data, Physica A, 457 (2016), 166-175¡±. We first obtain the maximum likelihood and Bayesian estimators of the model parameters. We then derive several point predictors for a future record on the basis of the first n observed records. Two real data sets on precipitation and Covid 19 are analysed and a Monte Carlo simulation study has been performed to evaluate the statistical performance of point predictors presented in this paper