Bayesian prediction of order statistics with fixed and random sample sizes based on k-record values from Pareto distribution

ABSTRACT

In this paper, the two-parameter Pareto distribution is considered and the problem of prediction of order statistics from a future sample and that of its geometric mean are discussed. The Bayesian approach is applied to construct predictors based on observed k-record values for the cases when the future sample size is fixed and when it is random. Several Bayesian prediction intervals are derived. Finally, the results of a simulation study and a numerical example are presented for illustrating all the inferential procedures developed here.

Keywords:

• Bayesian prediction
• geometric mean
• k-records
• order statistics
• Pareto distribution
• random sample size

MATHEMATICS SUBJECT CLASSIFICATION:

• Primary 62G30
• Secondary 62F15