The Choice of Maximum Likelihood Estimate among the Lognormal, Weibull and Mixed-Lognormal-Weibull Distributions: An Empirical Examination of Stock Price Returns

Publication Date: 12/02/2024

DOI: 10.52589/AJMSS-7KX2RZ7R

Author(s): Chukwudi Anderson Ugomma.

Volume/Issue: Volume 7 , Issue 1 (2024)


This paper compared the maximum likelihood estimates (MLE) of lognormal, Weibull and Mixed-lognormal-weibull distributions. The data for this study were Coca-cola stock price returns obtained from and the result with the help of Excel package shows that Weibull distributionhas the minimum Mean Squared Error among the lognormal and Mixed-lognormal-weibull distributions; hence, the maximum likelihood estimate of the Weibull distribution is the choice.


Maximum Likelihood Estimate, Lognormal Distribution, Weibull Distribution, Mixed-Lognormal-Weibull Distribution(MLWD), Mean Squared Error (MSE).

No. of Downloads: 0

View: 126

This article is published under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0)