2008/02/01 by K Krishnamoorthy, K. Krishnamoorthy, Thomas Mathew +1 · 1 citation
Mathematics · #Statistical Distribution Estimation and Applications #Advanced Statistical Methods and Models #Statistical Methods and Bayesian Inference
paper · doi:10.1198/004017007000000353
In this article we propose inferential procedures for a gamma distribution using the Wilson–Hilferty (WH) normal approximation. Specifically, using the result that the cube root of a gamma random variable is approximately normally distributed, we propose normal-based approaches for a gamma distribution for (a) constructing prediction limits, one-sided tolerance limits, and tolerance intervals; (b) for obtaining upper prediction limits for at least l of m observations from a gamma distribution at each of r locations; and (c) assessing the reliability of a stress-strength model involving two independent gamma random variables. For each problem, a normal-based approximate procedure is outlined, and its applicability and validity for a gamma distribution are studied using Monte Carlo simulation. Our investigation shows that the approximate procedures are very satisfactory for all of these problems. For each problem considered, the results are illustrated using practical examples. Our overall conclusion is that the WH normal approximation provides a simple, easy-to-use unified approach for addressing various problems for the gamma distribution.