A novel approach to generate distributions
By: Subhankar Dutta, Roberto Vila, Terezinha K. A. Ribeiro
Potential Business Impact:
Makes math models fit real-world numbers better.
A novel approach to adding two additional parameters to a family of distributions for better adaptability has been put forth. This approach yields a versatile class of distributions supported on the positive real line. We proceed to analyze its mathematical characteristics, such as critical points, modality, stochastic representation, identifiability, quantiles, moments, and truncated moments. We present a new regression model for unimodal continuous data based on a submodel of the newly proposed family of distributions, in which the distribution of the response variable is reparameterized in terms of the median. We use the maximum likelihood method to estimate the parameters, which was implemented through the gamlss package in R. The proposed regression model was applied to a real dataset, and its adequacy was validated through quantile residual analysis.
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