A New Heavy-Tailed Lomax Model With Characterizations, Applications, Peaks Over Random Threshold Value-at-Risk, and the Mean-of-Order-P Analysis

In this work, a new heavy-tailed Lomax model is proposed for the reliability and actuarial risk analysis. Simulations are conducted to investigate how the estimators behave. Parameters are derived through maximum likelihood estimation techniques. The efficacy of the newly proposed heavy-tailed Loma...

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Main Authors: M. I. Khan, Abdussalam Aljadani, Mahmoud M. Mansour, Enayat M. Abd Elrazik, G. G. Hamedani, Haitham M. Yousof, Wahid A. M. Shehata
Format: Article
Language:English
Published: Wiley 2024-01-01
Series:Journal of Mathematics
Online Access:http://dx.doi.org/10.1155/jom/5329529
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author M. I. Khan
Abdussalam Aljadani
Mahmoud M. Mansour
Enayat M. Abd Elrazik
G. G. Hamedani
Haitham M. Yousof
Wahid A. M. Shehata
author_facet M. I. Khan
Abdussalam Aljadani
Mahmoud M. Mansour
Enayat M. Abd Elrazik
G. G. Hamedani
Haitham M. Yousof
Wahid A. M. Shehata
author_sort M. I. Khan
collection DOAJ
description In this work, a new heavy-tailed Lomax model is proposed for the reliability and actuarial risk analysis. Simulations are conducted to investigate how the estimators behave. Parameters are derived through maximum likelihood estimation techniques. The efficacy of the newly proposed heavy-tailed Loma distribution is illustrated using the USA indemnity loss datasets. The findings clearly indicate that the new loss model offers a superior parametric fit compared to other competing distributions. Analyzing metrics such as value-at-risk, tail mean variance, tail variance, peaks over a random threshold value-at-risk (PORT-VAR), and the mean-of-order-P (MOP(P)) can aid in risk assessment and in identifying and describing significant events or outliers within the USA indemnity loss. This research introduces PORT-VAR estimators tailored specifically for risk analysis using the USA indemnity loss dataset. The study emphasizes determining the optimal order of P based on the true mean value to enhance the characterization of critical events in the dataset.
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issn 2314-4785
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publishDate 2024-01-01
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series Journal of Mathematics
spelling doaj-art-6166fc7b9a2240e49cfe6524d1ed92832025-08-20T01:56:39ZengWileyJournal of Mathematics2314-47852024-01-01202410.1155/jom/5329529A New Heavy-Tailed Lomax Model With Characterizations, Applications, Peaks Over Random Threshold Value-at-Risk, and the Mean-of-Order-P AnalysisM. I. Khan0Abdussalam Aljadani1Mahmoud M. Mansour2Enayat M. Abd Elrazik3G. G. Hamedani4Haitham M. Yousof5Wahid A. M. Shehata6Department of MathematicsDepartment of ManagementManagement Information Systems DepartmentManagement Information Systems DepartmentDepartment of Mathematical and Statistical SciencesDepartment of StatisticsDepartment of MathematicsIn this work, a new heavy-tailed Lomax model is proposed for the reliability and actuarial risk analysis. Simulations are conducted to investigate how the estimators behave. Parameters are derived through maximum likelihood estimation techniques. The efficacy of the newly proposed heavy-tailed Loma distribution is illustrated using the USA indemnity loss datasets. The findings clearly indicate that the new loss model offers a superior parametric fit compared to other competing distributions. Analyzing metrics such as value-at-risk, tail mean variance, tail variance, peaks over a random threshold value-at-risk (PORT-VAR), and the mean-of-order-P (MOP(P)) can aid in risk assessment and in identifying and describing significant events or outliers within the USA indemnity loss. This research introduces PORT-VAR estimators tailored specifically for risk analysis using the USA indemnity loss dataset. The study emphasizes determining the optimal order of P based on the true mean value to enhance the characterization of critical events in the dataset.http://dx.doi.org/10.1155/jom/5329529
spellingShingle M. I. Khan
Abdussalam Aljadani
Mahmoud M. Mansour
Enayat M. Abd Elrazik
G. G. Hamedani
Haitham M. Yousof
Wahid A. M. Shehata
A New Heavy-Tailed Lomax Model With Characterizations, Applications, Peaks Over Random Threshold Value-at-Risk, and the Mean-of-Order-P Analysis
Journal of Mathematics
title A New Heavy-Tailed Lomax Model With Characterizations, Applications, Peaks Over Random Threshold Value-at-Risk, and the Mean-of-Order-P Analysis
title_full A New Heavy-Tailed Lomax Model With Characterizations, Applications, Peaks Over Random Threshold Value-at-Risk, and the Mean-of-Order-P Analysis
title_fullStr A New Heavy-Tailed Lomax Model With Characterizations, Applications, Peaks Over Random Threshold Value-at-Risk, and the Mean-of-Order-P Analysis
title_full_unstemmed A New Heavy-Tailed Lomax Model With Characterizations, Applications, Peaks Over Random Threshold Value-at-Risk, and the Mean-of-Order-P Analysis
title_short A New Heavy-Tailed Lomax Model With Characterizations, Applications, Peaks Over Random Threshold Value-at-Risk, and the Mean-of-Order-P Analysis
title_sort new heavy tailed lomax model with characterizations applications peaks over random threshold value at risk and the mean of order p analysis
url http://dx.doi.org/10.1155/jom/5329529
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