Benha University

Ahmed Z. Afify

Asst. Professor

Faculty of Commerce Statistics,Math & Insurances

The extended loglogistic distribution: inference and actuarial applications.

Mathematics • 2021
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Publication Information
Authors Alfaer, N.M., Gemeay, A.M., Aljohani, H.M. and Afify, A.Z.
Keywords Not Available
Journal Mathematics
Publisher Not Available
Volume 9
Issue Not Available
Pages 1386
publication.type International
Paper Link Open Link
Supplementary Materials Not Available
Abstract
Actuaries are interested in modeling actuarial data using loss models that can be adopted to describe risk exposure. This paper introduces a new flexible extension of the log-logistic distribution, called the extended log-logistic (Ex-LL) distribution, to model heavy-tailed insurance losses data. The Ex-LL hazard function exhibits an upside-down bathtub shape, an increasing shape, a J shape, a decreasing shape, and a reversed-J shape. We derived five important risk measures based on the Ex-LL distribution. The Ex-LL parameters were estimated using different estimation methods, and their performances were assessed using simulation results. Finally, the performance of the Ex-LL distribution was explored using two types of real data from the engineering and insurance sciences. The analyzed data illustrated that the Ex-LL distribution provided an adequate fit compared to other competing distributions such as the log-logistic, alpha-power log-logistic, transmuted log-logistic, generalized log-logistic, Marshall–Olkin log-logistic, inverse log-logistic, and Weibull generalized log-logistic distributions.
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