Approximate tolerance intervals for the discrete Poisson–Lindley distribution

Abstract

The Poisson–Lindley distribution is a compound discrete distribution that can be used as an alternative to other discrete distributions, like the negative binomial. This paper develops approximate one-sided and equal-tailed two-sided tolerance intervals for the Poisson–Lindley distribution. Practical applications of the Poisson–Lindley distribution frequently involve large samples, thus we utilize large-sample Wald confidence intervals in the construction of our tolerance intervals. A coverage study is presented to demonstrate the efficacy of the proposed tolerance intervals. The tolerance intervals are also demonstrated using two real data sets. The R code developed for our discussion is briefly highlighted and included in the tolerance package.