Statistical analysis of a compound exponential failure model

This paper discusses the statistical analysis of a two parameter mixed(or compound)exponential failure model. This model is also a Pareto distribution of the second kind. Some computational aspects of estimating both parameters by the method of maximum likelihood are discussed and small-sample means and variances are derived and studied. Tests of hypotheses on each parameter with the other parameter an unknown nuisance parameter are provided, and the construction of confidence limits are discussed.