The Pareto distribution is a simple model for nonnegative data with a power law probability tail. In many practical applications, there is a natural upper bound that truncates the probability tail. This article derives estimators for the truncated Pareto distribution, investigates their properties, and illustrates a way to check for fit. These methods are illustrated with applications from finance, hydrology, and atmospheric science. © 2006 American Statistical Association.
CITATION STYLE
Aban, I. B., Meerschaert, M. M., & Panorska, A. K. (2006). Parameter estimation for the truncated Pareto distribution. Journal of the American Statistical Association, 101(473), 270–277. https://doi.org/10.1198/016214505000000411
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