On entropy of a Pareto distribution in the presence of outliers |
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| Authors: | M Jabbari Nooghabi E Khaleghpanah Nooghabi |
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| Institution: | 1. Department of Statistics, Ferdowsi University of Mashhad, Ordered and Spatial Data Center of Excellence of Ferdowsi University of Mashhad, Mashhad, Iranjabbarinm@um.ac.ir jabbarinm@yahoo.com;3. Department of Statistics, Ferdowsi University of Mashhad, Ordered and Spatial Data Center of Excellence of Ferdowsi University of Mashhad, Mashhad, Iran |
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| Abstract: | ABSTRACTThe aim of this paper is obtaining the amount of information there exists in the Pareto distribution in the presence of outliers. For the sake of this purpose, Shannon entropy, ?-entropy, Fisher information, and Kullback–Leibler distance are computed. Furthermore, a section has been devoted to compare these quantities in these two cases of the Pareto distribution (with outliers and the homogenous case). At the end of this paper, two actual examples, which are related to insurance companies, are brought. A brief summary of which is done in this work is also reported. |
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| Keywords: | ?-Entropy Fisher information Kullback–Leibler divergence Outliers Pareto distribution Shannon entropy |
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