Compounded inverse Weibull distributions: Properties, inference and applications

ABSTRACT

In this paper two probability distributions are analyzed which are formed by compounding inverse Weibull with zero-truncated Poisson and geometric distributions. The distributions can be used to model lifetime of series system where the lifetimes follow inverse Weibull distribution and the subgroup size being random follows either geometric or zero-truncated Poisson distribution. Some of the important statistical and reliability properties of each of the distributions are derived. The distributions are found to exhibit both monotone and non-monotone failure rates. The parameters of the distributions are estimated using the expectation-maximization algorithm and the method of minimum distance estimation. The potentials of the distributions are explored through three real life data sets and are compared with similar compounded distributions, viz. Weibull-geometric, Weibull-Poisson, exponential-geometric and exponential-Poisson distributions.

KEYWORDS:

• EM algorithm
• Geometric distribution
• Inverse Weibull distribution
• Maximum likelihood estimation
• Method of minimum distance
• Zero-truncated Poisson distribution

MATHEMATICS SUBJECT CLASSIFICATION:

• Primary 62E99
• Secondary 62N05, 62F10, 62-07

Acknowledgements

The authors are thankful to the reviewers and the editor for their constructive comments and suggestions which have resulted in an improvement in the presentation of this manuscript.