Abstract
Studies on the iteration procedure in double bootstrap method have given a great impact on confidence interval performance. However, the procedure was claimed to be complicated and demand intensive computer processor. Considering this problem, an alternative procedure was proposed in this research. Despite of using small sampling sequence, this research was aimed to increase the accuracy estimation using a second replication number which resulted in a large sampling sequence of double bootstrap. In this paper, the alternative double bootstrap method was hybrid onto an example model and its performance was based on Studentised interval. The performance was examined in simulation study and real sample data of sukuk Ijarah. The result showed that hybrid double bootstrap model gave more accurate estimation in terms of its shorter length when dealing with various parameter values and has shown to improve the single bootstrap estimation.
Highlights
The iteration procedure is basically used in double bootstrap method to construct confidence interval in situation where the uncertainty estimation is questionable
The alternative double bootstrap method was hybrid onto an example model and its performance was based on Studentised interval
The result showed that hybrid double bootstrap model gave more accurate estimation in terms of its shorter length when dealing with various parameter values and has shown to improve the single bootstrap estimation
Summary
The iteration procedure is basically used in double bootstrap method to construct confidence interval in situation where the uncertainty estimation is questionable. Introduced by Efron in 1983 [1], basically, the procedure is considered to use the plug-in method in each set of sample sequences of first bootstrap, and the replication size is done using small number than first replication. H. Zainuddin 806 range of time to complete the whole algorithm of iteration [2] [7]-[9]. Zainuddin 806 range of time to complete the whole algorithm of iteration [2] [7]-[9] Motivated by these problems, this paper proposes an alternative procedure of double bootstrap method which aims to increase the accuracy estimation by constructing the interval and reduce the computer processing. The proposed method considers a large sampling sequence of double bootstrap replication where the replication size is obtained and from approximation bias estimation method; refer to [10]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
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 call
