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Published in Applied Mathematical Sciences, Vol. 2 No. 9 (2008) at http://www.m-hikari.com/ams/ams-password-2008/ams-password9-12-2008/headrickAMS9-12-2008.pdf

Abstract

The family of g-and-h transformations are popular algorithms used for simulating non-normal distributions because of their simplicity and ease of execution. In general, two limitations associated with g-and-h transformations are that their probability density functions (pdfs) and cumulative distribution functions (cdfs) are unknown. In view of this, the g-and-h transformations’ pdfs and cdfs are derived in general parametric form. Moments are also derived and it is subsequently shown how the g and h parameters can be determined for prespecified values of skew and kurtosis. Numerical examples and parametric plots of g-and-h pdfs and cdfs are provided to confirm and demonstrate the methodology. It is also shown how g-and-h distributions can be used in the context of distribution fitting using real data sets.

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