A Natural Discrete One Parameter Polynomial Exponential Distribution

TL;DR

This paper introduces a new discrete distribution called NDOPPE, explores its properties, estimation methods, and applies it to model extreme data in automobile claims, comparing it with existing models.

Contribution

It proposes the NDOPPE distribution, a novel discrete distribution, and derives its properties, estimation procedures, and a compound form for risk modeling.

Findings

NDOPPE effectively models extreme automobile claim data.

The compound NDOPPE distribution compares favorably with classical models.

Structural and reliability properties of NDOPPE are thoroughly analyzed.

Abstract

In this paper, a new natural discrete version of the one parameter polynomial exponential family of distributions have been proposed and studied. The distribution is named as Natural Discrete One Parameter Polynomial Exponential (NDOPPE) distribution. Structural and reliability properties have been studied. Estimation procedure of the parameter of the distribution have been mentioned. Compound NDOPPE distribution in the context of collective risk model have been obtained in closed form. The new compound distribution has been compared with the classical compound Poisson, compound Negative binomial, compound discrete Lindley, compound xgamma-I and compound xgamma-II distributions regarding suitability of modelling extreme data with the help of some automobile claim.