A New Class of Pareto Distribution: Estimation and its Applications

The classical Pareto distribution is a positively skewed and right heavy-tailed lifetime distribution having many applications in various fields of science and social science. In this work, via the logarithmic transformed method, a new three-parameter lifetime distribution, an extension of classical Pareto distribution is generated. The different structural properties of the new distribution are studied. The model parameters are estimated by the method of maximum likelihood and Bayesian procedure. When all the three parameters of the distribution are unknown, the Bayes estimators cannot be obtained in a closed form, and hence, the Lindley's approximation under squared error loss function is used to compute the Bayes estimators. A Monte Carlo simulation study is also conducted to compare the performance of these estimators using mean square error. The application of the new distribution for modeling earthquake insurance and reliability data are illustrated using two real data sets.