ABSTRACT
In this paper, we introduce two new statistics for detecting outliers in the Pareto distribution. These new statistics are the extension of the statistics for detecting outliers in exponential and gamma distributions. In fact, we compare the power of our test statistics with the other statistics and select the best test statistic for detecting outliers in the Pareto distribution. Finally, numerical examples of different insurance claims are used to see the performance of the test.
Acknowledgments
The author are thankful to the referees for their valuable comments. This research was supported by a grant from Ferdowsi University of Mashhad; No. 2/48143.
Disclosure statement
No potential conflict of interest was reported by the author.
ORCID
Mehdi Jabbari Nooghabi http://orcid.org/0000-0002-5636-2209