Communications for Statistical Applications and Methods

The Korean Statistical Society (한국통계학회)
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Bayesian Survival Estimation of Pareto Distribution of the Second Kind Based on Type II Censored Data

  • Kim, Dal-Ho (Department of Statistics, Kyungpook National University) ;
  • Lee, Woo-Dong (Department of Asset Management, Daegu Haany University) ;
  • Kang, Sang-Gil (Department of Applied Statistics, Sangji University)
  • Published : 2005.12.01
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Abstract

In this paper, we discuss the propriety of the various noninformative priors for the Pareto distribution. The reference prior, Jeffreys prior and ad hoc noninformative prior which is used in several literatures will be introduced and showed that which prior gives the proper posterior distribution. The reference prior and Jeffreys prior give a proper posterior distribution, but ad hoc noninformative prior which is proportional to reciprocal of the parameters does not give a proper posterior. To compute survival function, we use the well-known approximation method proposed by Lindley (1980) and Tireney and Kadane (1986). And two methods are compared by simulation. A real data example is given to illustrate our methodology.

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References

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