Document Type : Original Article

Authors

• Kianoush Fathi Vajargah ¹
• Hossein Eslami Mofid Abadi ²

¹ Department of Statistics, NT.C., Islamic Azad University, Tehran, Iran.

² Department of Accounting & Management, Shahr.C., Islamic Azad University, Shahriar, Iran.

Abstract

This paper has discussed the selection of optimal increasing censorship plan based on Pittman Proximity Criterion. For small sample sizes, the Pittman proximity probabilities were clearly calculated and also it has been indicated that optimal increasing censorship plan is the censorship plan from right of regular second type. It has been inferred that this could be the same in all sample sizes (small and great). There has been also provided an algorithm for numerical calculations for probabilities of Pittman approximation between both growing censorship plans of sample size. The methodology is extended to capital market applications, including credit risk modeling and option pricing.

Keywords

• Pittman Criterion
• Censored Plan
• lifetime
• Ordered Statistics
• Capital Markets