Abstract
In this paper, we derive uniformly most powerful and uniformly most powerful unbiased tests for the skewness parameter of the two-piece double exponential distribution when the location and scale parameters are known. Neyman structure and likelihood ratio tests are derived in the case of known location parameter but unknown scale parameter. Test for symmetry of the distribution can be deduced as a special case. All the tests are exact and the cut-off points and power of the test can be obtained easily. The tests derived are applied to daily percentage change in the price of gold quoted in Mumbai market for the years 2015 and 2016. It has been deduced that the long term distribution is Laplace while the short term distribution is at times two-piece double exponential. These results can be advantageously used for speculative trading in the metal by short and long term investors.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of the Indian Society for Probability and Statistics
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
