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Sine F-Loss Family of Distributions: Properties and Insurance Applications |
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PP: 835-851 |
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doi:10.18576/amis/160518
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Author(s) |
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John Abonongo,
Ivivi J. Mwaniki,
Jane A. Aduda,
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Abstract |
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| Heavy-tailed distributions are vital in actuarial and financial modeling. In this article, a new family of heavy-tailed distributions known as sine F-Loss is proposed. The mathematical properties are derived and maximum likelihood estimators of the model parameters are obtained. For illustrative purposes, three special distributions; sine Weibull loss, sine Fre ́chet loss and sine Burr XII loss are proposed. Monte Carlo simulations are carried out to assess the behavior of the estimators. The densities and hazard rate functions exhibit increasing, decreasing, increasing-constant-decreasing, symmetric, right skewed, reversed J-shaped, bathtub and upside down bathtub shapes. The application of the proposed distributions is presented with two insurance loss datasets.
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