The proportional likelihood ratio order and applications

In this paper, we introduce a new stochastic order between continuous non-negative random variables called the PLR (proportional likelihood ratio) order, which is closely related to the usual likelihood ratio order. The PLR order can be used to characterize random variables whose logarithms have log...

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Detalhes bibliográficos
Autores: Ramos Romero, H. M., Sordo Díaz, M. A.
Formato: artículo
Fecha de publicación:2001
País:España
Recursos:Universitat Politècnica de Catalunya (UPC)
Repositorio:UPCommons. Portal del coneixement obert de la UPC
Idioma:inglés
OAI Identifier:oai:upcommons.upc.edu:2099/4156
Acesso em linha:https://hdl.handle.net/2099/4156
Access Level:acceso abierto
Palavra-chave:Distribution (Probability theory)
Probability
Distribució (Teoria de la probabilitat)
Probabilitats
Classificació AMS::60 Probability theory and stochastic processes::60E Distribution theory
Classificació AMS::60 Probability theory and stochastic processes::60K Special processes
Descrição
Resumo:In this paper, we introduce a new stochastic order between continuous non-negative random variables called the PLR (proportional likelihood ratio) order, which is closely related to the usual likelihood ratio order. The PLR order can be used to characterize random variables whose logarithms have log-concave (log-convex) densities. Many income random variables satisfy this property and they are said to have the IPLR (increasing proportional likelihood ratio) property (DPLR property). As an application, we show that the IPLR and DPLR properties are sufficient conditions for the Lorenz ordering of truncated distributions.