Interval Estimation for the Two-Parameter Pareto Distribution Based on Record Values

This paper considers the interval estimation problem for the Pareto distribution based on record statistics. We present some exact confidence intervals and exact joint confidence regions for the parameters of Pareto distribution based on record statistics. One of the applications of the joint confidence regions of the parameters is to find confidence bounds for the functions of the parameters. In addition, the predictive interval of the future record based on the observed record values is also proposed. A Monte Carlo simulation is conducted to compare the proposed joint confidence regions. Finally, two numerical examples are given also to illustrate the methods proposed in this paper.