Open Access Open Access  Restricted Access Subscription or Fee Access

A New Closed-form Approximation for the Skew Normal Distribution with Applications

Idowu O. Ayodeji

Abstract



The paper presents a closed-form approximation for skew normal distribution using the (approximate) equivalence link between the normal and the logistic distribution functions. Consequently, the approximation may be used in lieu of the skew normal (SN) distribution to enhance technical simplicity and mathematical tractability. In addition, consistency of the estimators of the parameters of the proposed closed-form was discussed. Finally, synthetic
datasets of selected sample sizes n = 25; 50; 100; 500; 1000 and four sets of real-life data comprising of two economic datasets and two others from copious literature were used to test the adequacy of the proposed specification. The study concluded that the proposed model provided a very good approximation for SN such that can be used in further mathematical derivations involving the skew normal, and also for inclusion in software programs.

Keywords


normal CDF, logistic distribution, simulation, Otis scores, econometrics.

Full Text:

PDF


Disclaimer/Regarding indexing issue:

We have provided the online access of all issues and papers to the indexing agencies (as given on journal web site). It’s depend on indexing agencies when, how and what manner they can index or not. Hence, we like to inform that on the basis of earlier indexing, we can’t predict the today or future indexing policy of third party (i.e. indexing agencies) as they have right to discontinue any journal at any time without prior information to the journal. So, please neither sends any question nor expects any answer from us on the behalf of third party i.e. indexing agencies.Hence, we will not issue any certificate or letter for indexing issue. Our role is just to provide the online access to them. So we do properly this and one can visit indexing agencies website to get the authentic information.