30 – Testing/Estimation
A Mixture Truncated Pareto Distribution
Percy Brill
University of Windsor
Vincenzo Coia
Brock University
Mei Ling Huang
Brock University
Heavy tailed distributions have many applications in the real world. The Pareto distribution is very popular. The tail distribution is important but the threshold of the distribution is difficult to determine. We propose a mixture truncated Pareto distribution (MTPD). This study leads us to construct a cluster Pareto distribution (CPD) estimation method. The paper studies a real world example which utilized the MTPD. The results of goodness of fit tests show that the MTPD and the cluster estimation method produce very good fitting distributions with real world data.