Signed log-likelihood ratio test for the scale parameter of Poisson Inverse Weibull distribution with the development...

The three-parameter Poisson Inverse Weibull (PIW) distribution offers enhanced flexibility for modeling system failure times. This study introduces the signed log-likelihood ratio test (SLRT) for hypothesis testing of the scale parameter ([Formula: see text]) in the PIW distribution and compares its performance with the test based on the asymptotic normality of maximum likelihood estimators (ANMLE). Simulation studies show that the SLRT consistently maintains type I error rates within the acceptable range of 0.04 to 0.06 at a significance level of 0.05, satisfying Cochran's criterion across various sample sizes and parameter configurations. In contrast, the ANMLE method tends to be conservative, often underestimating the nominal significance level. In terms of empirical power, the SLRT outperforms the ANMLE, particularly in small-sample scenarios (n = 10, 15), and maintains superior power across all tested configurations. For example, when testing [Formula: see text] against [Formula: see text] with [Formula: see text], and n = 10, the SLRT achieves a power of 0.6621, compared to 0.4181 for the ANMLE, demonstrating the SLRT's robustness and reliability in limited-data. Moreover, the ANMLE generally exhibits low power in most cases, indicating reduced sensitivity to detecting true effects in small samples. However, with medium and large sample sizes (n = 30, 50, 80 and 100), the power of the ANMLE begins to approach that of the SLRT. Despite this, the ANMLE never outperforms the SLRT, highlighting a fundamental limitation of this method. Additionally, varying the shape parameter [Formula: see text] while fixing [Formula: see text] showed a negligible impact on power, further confirming the robustness of the SLRT. Sensitivity analyses also validate the reliability of the SLRT under extreme values of [Formula: see text] and across different sample sizes. To support practical application, the PIW4LIFETIME web application (accessible at https://jularatchumnaul.shinyapps.io/PIW4LIFETIME/) was developed to enable users to assess whether data fit the PIW distribution, estimate model parameters using maximum likelihood, and perform two-sided test for the scale parameter using SLRT. The performance of the proposed method and the PIW4LIFETIME web application was demonstrated through a real-world example.