Shrinkage Testimators for the Shape Parameter of Pareto Distribution Using LINEX Loss Function

Abstract

In this article, shrinkage testimators for the shape parameter of a Pareto distribution are considered, when its prior guess value is available. The choices of shrinkage factor are also suggested. The proposed testimators are compared with the minimum risk estimator among the class of unbiased estimators with the LINEX loss function.

Keywords:

• Level of significance
• LINEX loss function
• Mean square error
• Pareto distribution
• Shrinkage factor and shrinkage testimator

Mathematics Subject Classification:

• Primary 62F03
• Secondary 62F04, 62F10

Acknowledgments

The authors are thankful to the associate editor and the referee for their helpful comments and suggestions.