USING A COST OF LIVING DATA FOR A COMPARISON BETWEEN MAXIMUM LIKELIHOOD METHOD AND MOMENT METHOD FOR ESTIMATING GAMMA DISTRIBUTION PARAMETERS

Abstract

Widespread use of methods of probability theory and mathematical statistics in economics and practice requires a broader and more thorough training of specialists in various sectors of the economy in the field of their development of modern mathematical knowledge. Virtually all processes occurring in the organization of production, finance, marketing, banking, management, have elements of uncertainty, complexity, multiplicity, ie are characterized by chance. Therefore, it is very important to manage the economy is to establish patterns in random phenomena. The use of statistical methods of data processing makes it possible to identify real patterns that objectively exist in mass random phenomena. On the basis of such data processing it is possible to make a forecast of economic development with certain accuracy, to calculate the risks of economic activity, to predict crises and other socio-economic phenomena that are random.  When we studying data related to the cost of living Since its expression sometimes requires studying most of the phenomena of " Populations " expressed by a random variable (X), whose value is a Population whose probability function  has a limited mathematical formula, but it depends on some unknown parameters  and whose value or values are determined the distribution is completely determined and thus [all its commas are determined] and this is why it called The need to search for methods that can be used to determine the "Estimation" of the unknown Population parameters through which a random sample is drawn from that population. Using this sample data  a function can be found in the sample data  that is used as a tool for determining a value. This function is called the Estimator. In our study, we will deal with the most important methods for Estimating the parameters by using the cost of living data, which are the two methods of "Maximum likelihood " and " Momentum likelihood ", and their use in Estimating the parameters of the "Gamma Distribution ". They were compared to find out which method is better for Estimating the parameters.