Inference for the reliability function based on progressively type II censored data from the Pareto model: The generalized variable approach

The problem of hypothesis testing and interval estimation, based on the generalized variable method, for the reliability function of Pareto distribution using progressively type II censored data with fixed removals are considered. The confidence limits and testing procedures have to be numerically obtained; however, the required computations are simple and straightforward. There are no exact or approximate testing procedures and confidence intervals for reliability parameter of a Pareto distribution based on the progressively type-II right censored data with random or fixed removals available in the literature. In addition, generalized coverage probabilities, generalized size of the test, and adjusted and unadjusted generalized powers of the test are also discussed. Comparison of the reliability function under the classical paradigm and the generalized paradigm is done citing an illustrative example and an example based on the simulated data to demonstrate the advantages and merits of the proposed generalized variable method over the classical method.