Bayesian one-sample prediction of future observations under Pareto distribution

Suppose that the length of time in years for which a business operates until failure has a Pareto distribution. Let t 1 < t 2 < ··· < t r denote the survival lifetimes of the first r of a random sample of n businesses. Bayesian predictions are to be made on the ordered failure times of the remaining (n − r) businesses, using the conditional probability function. Numerical examples are given to illustrate our results.

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