Abstract:
In this paper a new probability density function with both unbounded and bounded sup-
port is presented. The new distribution, called modi ed exponential-geometric distribution
arises from the exponential-geomeric distribution introduced by Adamidis and Loukas [1].
It presents a variety of shapes of density function and hazard rate function. The distribution with scale-transformed bounded support is considered as an alternative to the classical beta distribution and is shown to have an application in insurance. In particular, we suggest a special class of distorted premium principle based on this distribution and we compare it with the dual power premium principle. Moreover, the proposed distribution with un-bounded support is used as a lifetime model and is considered as an attractive alternativeto some existing models in the reliability literature.
Description:
1 Associate Professor, Indian Institute of Management, Kozhikode,
2 Professor, Indian Institute of Science and Education Research, Kolkata.
