A new Generalization of Dagum Distribution with Application to Financial Data Sets

In statistics and financial modeling, the Dagum model can be an alternative to log-nornal and pareto distributions in the applications of personal income, financial and wealth data, among others. This study proposed an extension of the Dagum model by adding an extra parameter from the Maxwell generalized family of distributions. Some properties of the extended Dagum model were studied. We illustrated the usefulness of the proposed distribution by applying two financial data related to Nigerian naira to Japanese Yen selling exchange rate data and the inflation rate of the United State of American data. It shown that, the Maxwell-Dagum model could be employed in modeling financial data apart from Weibul-Dagum, Topp-Leone-Dagum, Gamma-Dagum and Odd Log-Logistic-Dagum models.