Bayesian Interim Analysis Regarding a Future Observation from Two-Parameter Pareto and Exponential Distributions

Document Type : Original Article

Author

Faculty of Economics & Political Science, Cairo University

Abstract

Based on an interim type II censored sample of size n, a Bayesian predictive approach is adopted to obtain the predictive probability that if testing is continued for a further type II censored sample of size m, a decision will be reached regarding a future observation from the two parameter Pareto distribution. Since the Pareto distribution is transformation equivalent to the exponential distribution, the results can also be applied to the latter distribution.
 

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