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{{Probability distribution
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  | name      = Beta Rectangular
  | type      = density
  | pdf_image  = No image available
  | cdf_image  = No image available
  | notation  =
  | parameters = [[shape parameter|shape]] ([[real number|real]])<br /><math>\beta > 0</math> [[shape parameter|shape]] ([[real number|real]]) <br> <math>1>\theta > 0</math> mixture parameter
  |  support    =<math>x \in (a, b)\!</math>| 
  | pdf        = <math>\begin{cases}
\frac{\theta \Gamma(\alpha + \beta)}{\Gamma(\alpha)\Gamma(\beta)} 


\frac{(x - a)^{\alpha-1}  (b-x)^{\beta - 1} }{(b - a)^{\alpha + \beta + 1}}


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+ \frac{1 - \theta}{b-a}
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& \text{for } x \in [a,b]  \\
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                  0              & \text{otherwise}
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                \end{cases}</math>
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                  0              & \text{for } x \le a \\
\theta I_z(\alpha,\beta) + \frac{(1-\theta)(x-a)}{b-a} & \text{for } x \in [a,b] \\
                  1              & \text{for } x \ge b
                \end{cases}</math>
where <math>z=(x-a)/(b-a)</math>
  | mean      =  <math>a + (b-a) \left(\frac{\theta \alpha}{\alpha + \beta} +
\frac{1-\theta}{2} \right)</math>
  | median    =  
  | mode      =  
  | variance  = <math>(b-a)^2\left(\frac{\theta\,\alpha(\alpha+1)}{k(k+1)} +
\frac{1-\theta}{3} - \frac{\bigl(k+\theta(\alpha-\beta)\bigr)^2}{4k^2}\right)</math> where <math>k=\alpha+\beta</math>
  | skewness  = 
  | kurtosis  =
  | entropy    =
  | mgf        =
  | char      =
}}


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In [[probability theory]] and [[statistics]], the '''beta rectangular distribution''' is a [[probability distribution]] that is a finite [[mixture distribution]] of the [[beta distribution]] and the [[uniform distribution (continuous)|continuous uniform distribution]]. The support is of the distribution is indicated by the parameters ''a'' and ''b'', which are the minimum and maximum values respectively. The distribution provides an alternative to the beta distribution such that it allows more density to be placed at the extremes of the bounded interval of support.<ref>{{cite journal |last1=Hahn |first1=E. D. | year=2008 |title=Mixture densities for project management activity times: A robust approach to PERT |journal=European Journal of Operational Research |volume= 188 |issue= 2|pages=450–459 |publisher=Elsevier |doi= 10.1016/j.ejor.2007.04.032|accessdate=}}</ref>  Thus it is a bounded distribution that allows for [[outliers]] to have a greater chance of occurring than does the beta distribution.
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==Definition==
 
=== Probability density function ===
 
If parameters of the beta distribution are ''&alpha;'' and ''&beta;'', and if the mixture parameter is ''&theta;'', then the beta rectangular distribution has [[probability density function]]{{citation needed|date=April 2012}} 
:<math>
  p(x|\alpha, \beta, \theta)=\begin{cases}
\frac{\theta \Gamma(\alpha + \beta)}{\Gamma(\alpha)\Gamma(\beta)} 
 
\frac{(x - a)^{\alpha-1}  (b-x)^{\beta - 1} }{(b - a)^{\alpha + \beta + 1}}
 
+ \frac{1 - \theta}{b-a}
 
  & \mathrm{for}\ a \le x \le b, \\[8pt]
  0 & \mathrm{for}\ x<a\ \mathrm{or}\ x>b
  \end{cases}
</math>
where <math>\Gamma(\cdot)</math> is the [[gamma function]].
 
=== Cumulative distribution function ===
 
The [[cumulative distribution function]] is{{citation needed|date=April 2012}}
:<math>
  F(x|\alpha, \beta, \theta)=
\theta I_z(\alpha,\beta) + \frac{(1-\theta)(x - a)}{b-a} \quad \quad \mathrm{  for}\ a \le x \le b,
</math>
where <math>z=\dfrac{x-a}{b-a}</math> and <math>I_z(\alpha,\beta)</math> is the [[regularized incomplete beta function]].
 
==Applications==
 
===Project management===
The [[beta distribution]] is frequently used in [[PERT]], [[critical path method]] (CPM) and other [[project management]] methodologies to characterize the distribution of an activity’s time to completion.<ref>{{cite journal |last1=Malcolm|first1=D. G. | last2=Roseboom |first2=J. H. | last3=Clark|first3=C. E. | last4=Fazar|first4=W.  | year=1959 |title=Application of a technique for research and development program evaluation |journal=Operations Research |volume= 7|pages=646&ndash;669 | doi=10.1287/opre.7.5.646}}</ref>
 
In PERT, restrictions on the beta parameters lead to shorthand computations for the mean and standard deviation of the beta distribution:
:<math> \begin{align}
  E(x) & {} = \frac{a + 4m + b}{6} \\
  \operatorname{Var} (x) & {} = \frac{(b-a)^2}{36}
\end{align}
</math>
where ''a'' is the minimum, ''b'' is the maximum, and ''m'' is the mode or most likely value.  However, the variance is seen to be a constant conditional on the range.  As a result there is no scope for expressing differing levels of uncertainty that the project manager might have about the activity time.
 
Eliciting the beta rectangular’s certainty parameter ''&theta;'' allows the project manager to incorporate the rectangular distribution and increase uncertainty by specifying ''&theta;'' is less than 1.  The above expectation formula then becomes
 
:<math> 
E(x) = \frac{\theta(a+4m+b) + 3(1-\theta)(a+b)}{6} .
</math>
If the project manager assumes the beta distribution is symmetric under the standard PERT conditions then the variance is
:<math>
  \operatorname{Var} (x) = \frac{(b-a)^2 (3-2\theta)}{36} ,
</math>
while for the asymmetric case it is
:<math>
  \operatorname{Var} (x) = \frac{(b-a)^2(3-2\theta^2)}{36}.
</math>
The variance can now be increased when uncertainty is larger.  However, the beta distribution may still apply depending on the project manager’s judgment.
 
The beta rectangular has been compared to the uniform-two sided power distribution and the uniform-generalized biparabolic distribution in the context of project management.  The beta rectangular exhibited larger variance and smaller kurtosis by comparison.<ref>{{cite journal |last1=López Martín|first1=M. M. | last2=García García |first2=C. B. | last3=García Pérez  |first3=J. | last4=Sánchez Granero  |first3=M. A. | year=2012 |title= An alternative for robust estimation in project management |journal= European Journal of Operational Research|volume= in press|issue= |pages= |publisher=Elsevier |doi= 10.1016/j.ejor.2012.01.058 |accessdate=}}</ref>
 
===Income distributions===
 
The beta rectangular distribution has been compared to the elevated two-sided power distribution in fitting U.S. income data.<ref>{{cite journal |last1=García |first1=C.B. | last2=García Pérez |first2=J. | last3=van Dorp |first3=J.R. | year=2011 |title= Modeling heavy-tailed, skewed and peaked uncertainty phenomena with bounded support |journal= Statistical Methods and Applications|volume= 20 |issue= 4|pages=463–486 |publisher=Springer |doi= |accessdate=}}</ref>  The 5-parameter elevated two-sided power distribution was found to have a better fit for some subpopulations, while the 3-parameter beta rectangular was found to have a better fit for other subpopulations.
 
==References==
{{reflist}}
 
{{ProbDistributions|continuous-bounded}}
 
[[Category:Continuous distributions]]
[[Category:Compound distributions]]
[[Category:Probability distributions]]

Revision as of 19:27, 16 December 2013

Template:Probability distribution

In probability theory and statistics, the beta rectangular distribution is a probability distribution that is a finite mixture distribution of the beta distribution and the continuous uniform distribution. The support is of the distribution is indicated by the parameters a and b, which are the minimum and maximum values respectively. The distribution provides an alternative to the beta distribution such that it allows more density to be placed at the extremes of the bounded interval of support.[1] Thus it is a bounded distribution that allows for outliers to have a greater chance of occurring than does the beta distribution.

Definition

Probability density function

If parameters of the beta distribution are α and β, and if the mixture parameter is θ, then the beta rectangular distribution has probability density functionPotter or Ceramic Artist Truman Bedell from Rexton, has interests which include ceramics, best property developers in singapore developers in singapore and scrabble. Was especially enthused after visiting Alejandro de Humboldt National Park.

p(x|α,β,θ)={θΓ(α+β)Γ(α)Γ(β)(xa)α1(bx)β1(ba)α+β+1+1θbaforaxb,0forx<aorx>b

where Γ() is the gamma function.

Cumulative distribution function

The cumulative distribution function isPotter or Ceramic Artist Truman Bedell from Rexton, has interests which include ceramics, best property developers in singapore developers in singapore and scrabble. Was especially enthused after visiting Alejandro de Humboldt National Park.

F(x|α,β,θ)=θIz(α,β)+(1θ)(xa)baforaxb,

where z=xaba and Iz(α,β) is the regularized incomplete beta function.

Applications

Project management

The beta distribution is frequently used in PERT, critical path method (CPM) and other project management methodologies to characterize the distribution of an activity’s time to completion.[2]

In PERT, restrictions on the beta parameters lead to shorthand computations for the mean and standard deviation of the beta distribution:

E(x)=a+4m+b6Var(x)=(ba)236

where a is the minimum, b is the maximum, and m is the mode or most likely value. However, the variance is seen to be a constant conditional on the range. As a result there is no scope for expressing differing levels of uncertainty that the project manager might have about the activity time.

Eliciting the beta rectangular’s certainty parameter θ allows the project manager to incorporate the rectangular distribution and increase uncertainty by specifying θ is less than 1. The above expectation formula then becomes

E(x)=θ(a+4m+b)+3(1θ)(a+b)6.

If the project manager assumes the beta distribution is symmetric under the standard PERT conditions then the variance is

Var(x)=(ba)2(32θ)36,

while for the asymmetric case it is

Var(x)=(ba)2(32θ2)36.

The variance can now be increased when uncertainty is larger. However, the beta distribution may still apply depending on the project manager’s judgment.

The beta rectangular has been compared to the uniform-two sided power distribution and the uniform-generalized biparabolic distribution in the context of project management. The beta rectangular exhibited larger variance and smaller kurtosis by comparison.[3]

Income distributions

The beta rectangular distribution has been compared to the elevated two-sided power distribution in fitting U.S. income data.[4] The 5-parameter elevated two-sided power distribution was found to have a better fit for some subpopulations, while the 3-parameter beta rectangular was found to have a better fit for other subpopulations.

References

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    A vendor's stamp duty has been launched on industrial property for the primary time, at rates ranging from 5 per cent to 15 per cent. The Authorities might be trying to reassure the market that they aren't in opposition to foreigners and PRs investing in Singapore's property market. They imposed these measures because of extenuating components available in the market." The sale of new dual-key EC models will even be restricted to multi-generational households only. The models have two separate entrances, permitting grandparents, for example, to dwell separately. The vendor's stamp obligation takes effect right this moment and applies to industrial property and plots which might be offered inside three years of the date of buy. JLL named Best Performing Property Brand for second year running

    The data offered is for normal info purposes only and isn't supposed to be personalised investment or monetary advice. Motley Fool Singapore contributor Stanley Lim would not personal shares in any corporations talked about. Singapore private home costs increased by 1.eight% within the fourth quarter of 2012, up from 0.6% within the earlier quarter. Resale prices of government-built HDB residences which are usually bought by Singaporeans, elevated by 2.5%, quarter on quarter, the quickest acquire in five quarters. And industrial property, prices are actually double the levels of three years ago. No withholding tax in the event you sell your property. All your local information regarding vital HDB policies, condominium launches, land growth, commercial property and more

    There are various methods to go about discovering the precise property. Some local newspapers (together with the Straits Instances ) have categorised property sections and many local property brokers have websites. Now there are some specifics to consider when buying a 'new launch' rental. Intended use of the unit Every sale begins with 10 p.c low cost for finish of season sale; changes to 20 % discount storewide; follows by additional reduction of fiftyand ends with last discount of 70 % or extra. Typically there is even a warehouse sale or transferring out sale with huge mark-down of costs for stock clearance. Deborah Regulation from Expat Realtor shares her property market update, plus prime rental residences and houses at the moment available to lease Esparina EC @ Sengkang