Pang, Wan-Kai; Hou, Shui-Hung; Troutt, Marvin D.; Yu, … - In: International Journal of Business and Economics 6 (2007) 3, pp. 225-236
The Pareto distribution is a heavy-tailed distribution often used in actuarial models. It is important for modeling losses in insurance claims, especially when we used it to calculate the probability of an extreme event. Traditionally, maximum likelihood is used for parameter estimation, and we...