Bayesian Estimation of Different Scale Parameters Using a LINEX Loss Function

Abstract

The LINEX loss function, which climbs exponentially with one-half of zero and virtually linearly on either side of zero, is employed to analyze parameter analysis and prediction problems. It can be used to solve both underestimation and overestimation issues. This paper explained the Bayesian estimation of mean, Gamma distribution, and Poisson process. First, an improved estimator for μ ² is provided (which employs a variation coefficient). Under the LINEX loss function, a better estimator for the square root of the median is also derived, and an enhanced estimation for the average mean in such a negatively exponential function. Second, giving a gamma distribution as a prior and a likelihood function as posterior yields a gamma distribution. The LINEX method can be used to estimate an estimator $\widehat{{\lambda }_{BL}}$ using posterior distribution. After obtaining $\widehat{{\lambda }_{BL}}$ , the hazard function $\widehat{h_{BL}}$ and $\widehat{D_{BL}}$ the function of survival estimators are used. Third, the challenge of sequentially predicting the intensity variable of a uniform Poisson process with a linear exponentially (LINEX) loss function and a constant cost of production time is investigated using a Bayesian model. The APO rule is offered as an approximation pointwise optimal rule. LINEX is the loss function used. A variety of prior distributions have already been studied, and Bayesian estimation methods have been evaluated against squared error loss function estimation methods. Finally, compare the results of Maximum Likelihood Estimation (MLE) and LINEX estimation to determine which technique is appropriate for such information by identifying the lowest Mean Square Error (MSE). The displaced estimation method under the LINEX loss function was also examined in this research, and an improved estimation was proposed.