A Stochastic Lomax Diffusion Process: Statistical Inference and Application

In this paper, we discuss a new stochastic diffusion process in which the trend function is proportional to Lomax density function. This distribution arises naturally studies of frequency extremely rare events. We first consider probabilistic characteristics proposed model, including its analytic expression as unique solution differential equation, transition probability together with conditional and unconditional functions. Then, present method address problem parameter estimation using maximum likelihood discrete sampling. requires non-linear achieved via simulated annealing method. Finally, apply model real-world example concerning adolescent fertility rate Morocco.