The Exponential T-X Family of Distributions: Properties and an Application to Insurance Data

Heavy-tailed distributions play a prominent role in actuarial and financial sciences. In this paper, we introduce a family of distributions that we refer to as exponential T-X (ETX) family. Based on the proposed approach, a new extension of the Weibull model is introduced. The proposed model is very...

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Main Authors: Zubair Ahmad, Eisa Mahmoudi, Morad Alizadeh, Rasool Roozegar, Ahmed Z. Afify
Format: Article
Language:English
Published: Wiley 2021-01-01
Series:Journal of Mathematics
Online Access:http://dx.doi.org/10.1155/2021/3058170
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author Zubair Ahmad
Eisa Mahmoudi
Morad Alizadeh
Rasool Roozegar
Ahmed Z. Afify
author_facet Zubair Ahmad
Eisa Mahmoudi
Morad Alizadeh
Rasool Roozegar
Ahmed Z. Afify
author_sort Zubair Ahmad
collection DOAJ
description Heavy-tailed distributions play a prominent role in actuarial and financial sciences. In this paper, we introduce a family of distributions that we refer to as exponential T-X (ETX) family. Based on the proposed approach, a new extension of the Weibull model is introduced. The proposed model is very flexible in modeling heavy-tailed data. Some mathematical properties are derived, and maximum likelihood estimates of the model parameters are obtained. A Monte Carlo simulation study is conducted to evaluate the performance of the maximum likelihood estimators. Actuarial measures such as value at risk and tail value at risk are also calculated. A simulation study based on these actuarial measures is provided. Finally, an application to a heavy-tailed automobile insurance claim data set is presented. The proposed model is compared with some well-known competing distributions.
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institution OA Journals
issn 2314-4629
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language English
publishDate 2021-01-01
publisher Wiley
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spelling doaj-art-85c23e16899e436c9bea0738d0a65ece2025-08-20T02:08:56ZengWileyJournal of Mathematics2314-46292314-47852021-01-01202110.1155/2021/30581703058170The Exponential T-X Family of Distributions: Properties and an Application to Insurance DataZubair Ahmad0Eisa Mahmoudi1Morad Alizadeh2Rasool Roozegar3Ahmed Z. Afify4Department of Statistics, Yazd University, P.O. Box 89175-741, Yazd, IranDepartment of Statistics, Yazd University, P.O. Box 89175-741, Yazd, IranDepartment of Statistics, Persian Gulf University, Bushehr 75169, IranDepartment of Statistics, Yazd University, P.O. Box 89175-741, Yazd, IranDepartment of Statistics, Mathematics and Insurance, Benha University, Benha 13511, EgyptHeavy-tailed distributions play a prominent role in actuarial and financial sciences. In this paper, we introduce a family of distributions that we refer to as exponential T-X (ETX) family. Based on the proposed approach, a new extension of the Weibull model is introduced. The proposed model is very flexible in modeling heavy-tailed data. Some mathematical properties are derived, and maximum likelihood estimates of the model parameters are obtained. A Monte Carlo simulation study is conducted to evaluate the performance of the maximum likelihood estimators. Actuarial measures such as value at risk and tail value at risk are also calculated. A simulation study based on these actuarial measures is provided. Finally, an application to a heavy-tailed automobile insurance claim data set is presented. The proposed model is compared with some well-known competing distributions.http://dx.doi.org/10.1155/2021/3058170
spellingShingle Zubair Ahmad
Eisa Mahmoudi
Morad Alizadeh
Rasool Roozegar
Ahmed Z. Afify
The Exponential T-X Family of Distributions: Properties and an Application to Insurance Data
Journal of Mathematics
title The Exponential T-X Family of Distributions: Properties and an Application to Insurance Data
title_full The Exponential T-X Family of Distributions: Properties and an Application to Insurance Data
title_fullStr The Exponential T-X Family of Distributions: Properties and an Application to Insurance Data
title_full_unstemmed The Exponential T-X Family of Distributions: Properties and an Application to Insurance Data
title_short The Exponential T-X Family of Distributions: Properties and an Application to Insurance Data
title_sort exponential t x family of distributions properties and an application to insurance data
url http://dx.doi.org/10.1155/2021/3058170
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