Neutrosophic Laplace Distribution with Application in Financial Data Analysis

Abstract

The Laplace distribution, also known as the double exponential distribution, is a continuous
probability distribution that is often used for modelling the data having heavy tails. In this paper, we
proposed the Neutrosophic Laplace distribution which is the extension of the classical Laplace
Distribution. We derived various statistical properties of the Neutrosophic Laplace Distribution such
as mean, variance, skewness, rth moment, quartiles, and moment-generating function. The
expressions for the estimation of the parameters are also derived using the maximum likelihood
function of the distribution. A simulation study has been done to evaluate the performance of
estimates. An application of the Neutrosophic Laplace Distribution is discussed to study the daily
return of the NIFTY50 from Indian Stock Market. The analysis shows that the neutrosophic Laplace
Model is acceptable, effective, and adequate for dealing with uncertainty in an unpredictable context