Nonlinear Programming to Determine Best Weighted Coefficient of Balanced LINEX Loss Function Based on Lower Record Values

Fuad S. Al-Duais, Mohammed Alhagyan and Ahmed Mostafa Khalil

Complexity, 2021, vol. 2021, 1-6

Abstract: Majority research studies in the literature determine the weighted coefficients of balanced loss function by suggesting some arbitrary values and then conducting comparison study to choose the best. However, this methodology is not efficient because there is no guarantee ensures that one of the chosen values is the best. This encouraged us to look for mathematical method that gives and guarantees the best values of the weighted coefficients. The proposed methodology in this research is to employ the nonlinear programming in determining the weighted coefficients of balanced loss function instead of the unguaranteed old methods. In this research, we consider two balanced loss functions including balanced square error (BSE) loss function and balanced linear exponential (BLINEX) loss function to estimate the parameter and reliability function of inverse Rayleigh distribution (IRD) based on lower record values. Comparisons are made between Bayesian estimators (SE, BSE, LINEX, and BLINEX) and maximum likelihood estimator via Monte Carlo simulation. The evaluation was done based on absolute bias and mean square errors. The outputs of the simulation showed that the balanced linear exponential (BLINEX) loss function has the best performance. Moreover, the simulation verified that the balanced loss functions are always better than corresponding loss function.

Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
http://downloads.hindawi.com/journals/complexity/2021/5273191.pdf (application/pdf)
http://downloads.hindawi.com/journals/complexity/2021/5273191.xml (application/xml)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hin:complx:5273191

DOI: 10.1155/2021/5273191

Access Statistics for this article

More articles in Complexity from Hindawi
Bibliographic data for series maintained by Mohamed Abdelhakeem ().