Estimation of Log-Pearson Type III Distribution Using Percentile Roots: ATM Transactions Over 24 Years in Saudi Arabia as a Case Study

El Genidy, Mohammed; Megahed, Wesal; Mahfouz, Khaled

doi:10.21608/ajbas.2023.165619.1127

Estimation of Log-Pearson Type III Distribution Using Percentile Roots: ATM Transactions Over 24 Years in Saudi Arabia as a Case Study

Document Type : Original Article

Authors

¹ Department of Mathematics and Computer Science, Faculty of Science, Port Said University, Port Said, Egypt

² Department of Basic Science, Obour Higher Institute for Management Informatics, Egypt

10.21608/ajbas.2023.165619.1127

Abstract

Estimation methods of three-parameter distributions are essential in data-fitting distributions. In this paper, an application to a simple estimation method named Percentile Root (PR) was presented with ATM transactions as a case study. The PR method was applied to the ‎probability distribution Log-Pearson type III distribution. The statistical properties of the ‎distribution are exploited by PR to obtain the estimated parameters, ensuring the efficiency of ‎the method. The Anderson-Darling and Kolmogorov-Smirnov test were performed on the results of PR method. The significant results of‎PR method are compared with Maximum Likelihood Estimation (MLE), and it is clear that the PR method is simple in coding by a computer and provides precise results‎. The point is highly beneficial to applications of economic and commercial sciences. The Log-Pearson type III distribution was used by PR method and fitted to the ATM data set to overcome the problems of predicting the prospect numbers of financial transactions in banks.

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