Quality & Quantity

, Volume 41, Issue 6, pp 913–926 | Cite as

The Estimation of Pareto Distribution by a Weighted Least Square Method

  • Hai-Lin Lu
  • Shin-Hwa Tao


The two-parameter Pareto distribution provides reasonably good fit to the distributions of income and property value, and explains many empirical phenomena. For the censored data, the two parameters are regularly estimated by the maximum likelihood estimator, which is complicated in computation process. This investigation proposes a weighted least square estimator to estimate the parameters. Such a method is comparatively concise and easy to perceive, and could be applied to either complete or truncated data. Simulation studies are conducted in this investigation to show the feasibility of the proposed method. This report will demonstrate that the weighted least square estimator gives better performance than unweighted least square estimators with simulation cases. We also illustrate that the weighted least square estimator is very close to maximum likelihood estimator with simulation studies.


Pareto distribution weighted least square method type II censored data 


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Copyright information

© Springer Science + Business Media B.V. 2007

Authors and Affiliations

  1. 1.Department of Management Information ScienceChia-Nan University of Pharmacy and ScienceTainanTaiwan, ROC
  2. 2.Department of Hospital and Health Care AdministrationChia-Nan University of Pharmacy and ScienceTainanTaiwan, ROC
  3. 3.Tainan CountyTaiwan 717, ROC

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