Related Experiment Video
Updated: Oct 19, 2025

A Psychophysics Paradigm for the Collection and Analysis of Similarity Judgments
Published on: March 1, 2022
On Bayesian approach to composite Pareto models
Muhammad Hilmi Abdul Majid1, Kamarulzaman Ibrahim1
1Department of Mathematical Sciences, Faculty of Science and Technology, Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia.
Abstract:
In data modelling using the composite Pareto distribution, any observations above a particular threshold value are assumed to follow Pareto type distribution, whereas the rest of the observations are assumed to follow a different distribution. This paper proposes on the use of Bayesian approach to the composite Pareto models involving specification of the prior distribution on the proportion of data coming from the Pareto distribution, instead of assuming the prior distribution on the threshold, as often done in the literature. Based on a simulation study, it is found that the parameter estimates determined when using uniform prior on the proportion is less biased as compared to the point estimates determined when using uniform prior on the threshold. Applications on income data and finance are included for illustrative examples.
More Related Videos
Related Concept Videos
Pareto Chart
The Pareto chart is named after the Italian economist Vilfredo Pareto, who described the Pareto...
Model Approaches for Pharmacokinetic Data: Distributed Parameter Models
The distributed parameter models are specifically designed to account for variations and differences in some drug classes. This model is particularly useful for assessing regional concentrations of anticancer or...
Model Approaches for Pharmacokinetic Data: Compartment Models
Two primary types of compartment models are recognized: mammillary and catenary. The more...
Mechanistic Models: Compartment Models in Individual and Population Analysis
Multicompartment Models: Overview
These models offer a more comprehensive representation of drug behavior in the body than one-compartment models. They accommodate the complexity of drug distribution,...
Decision Making: P-value Method
First, a specific claim about the population parameter is proposed. The claim is based on the research question and is stated in a simple form. Further, an opposing statement to the claim is also stated. These statements can act as null and alternative hypotheses: a null hypothesis would be a neutral statement while the alternative hypothesis can...

