On the Distribution of the Product of Inverse Pareto and Exponential Random Variables

Abstract

This article considers Inverse Pareto and Exponential distributions to create the distribution of the product. The researchers derived its properties, such as; survival functions and hazard functions, and used the model criterion such as Sum Square Error (SSE), Akaike Information Criterion (AIC), and Bayesian Information Criterion (BIC) in estimating the parameters for deriving the best joint distribution between monthly precipitation and temperature in the Philippines from 1974 to 2013. The results showed that considering the monthly precipitation and temperature data, the distribution of the product of Inverse Pareto and Exponential outperformed the other existing distribution of the product.