Estimation of the scale parameter of the exponential distribution in the presence of outliers using linex loss function

The estimation of the scale parameter θ is derived for samples from the exponential distribution in the presence of outliers by using linex loss function. The risk function of the estimator is derived and compared with that of an admissible estimator relative to linex loss function. It is shown that estimator based on linex loss function is better in some region. Examples of failures in microcirculation and weight indicator housings are given in the end. © 2010, Taylor & Francis Group, LLC. All rights reserved.