Parameters in

Estimation of Parameters in Gamma

Gamma Distribution Distribution

Jozef Dopke
Metrix SA, Tczew, Poland 27
Received February 1992
Introduction
Consideration of the reliability of products can be frequently described by
gamma distribution. The Johnson estimation method for any data and
simplified maximum likelihood estimation method for complete samples can be
used to assess the parameters of this distribution. In this article, the application
of IBM PC programs to determine the parameters of gamma distribution
according to this method is described by way of examples.
If the random variable T is time between failures, the following distributions
should be considered:
● Exponential for use when failure rate has a constant value. A constant
failure rate period exists for many items of equipment after an early
failure period (decreasing failure rate) and before a wear-out failure
period (increasing failure rate).
● Gamma for use with decreasing or increasing failure rate. The gamma
model is therefore successful for a wide number of applications.
However, statistical procedures are not as extensively available as for the
exponential and the Weibull distributions.
If a gamma distribution is assumed, the observations are treated by graphical
and, in some cases, numerical methods to determine point estimates of the
distribution parameters.

Gamma Distribution
Probability three-parameter distribution in the case of gamma distribution of
the random variable can be defined:
0 , t<A
  C –1 
F (t : A , B , C ) =  t 1 (A – x)  x – A (1)
 ∫O B ∗ Γ (C )   exp –  dx , t < A
B   B 

where A = location parameter, B = scale parameter (B > 0), C = shape
parameter, exp(x) = e x – exponential function (e is the base for natural
logarithms).
The formula for full gamma function Γ(C) is: International Journal of Quality
& Reliability Management,
Vol. 11 No. 8, 1994, pp. 27-43,
Γ(C ) = ∫o∞ x C − i e − X dx (2 ) © MCB University Press,
0265-671X
IJQRM where e is the base of natural logarithms – a value of 2.71828183 can be used for
11,8 this problem. The select values of gamma function are:

Γ (1) = 1, Γ ( 0.5 ) = π
(where π is the value for Pi and has an approximate value of 3.1416), Γ(C) =
28 (C – 1)*Γ(C – 1). For a non-negative natural number it is Γ(C) = (C – i)|! =
1*2*3* . . . *(C – 2)*(C – 1).
In the case of C = 1 formula (1) gives the two-parameter exponential
distribution and in the case A = 0, the one-parameter exponential distribution.
The gamma distribution determines the Erlang distribution for shape
parameter equals non-negative natural number. For the shape parameter C→∞
the gamma distribution is approximated by the normal distribution.
If the random variable T can be approximated by a gamma distribution with
the shape parameter C, the random variable 2*T can be approximated by a chi
square distribution with the m = 2*C degrees of freedom.
If the independent random variables T1 and T2 can be approximated by
gamma distribution with the parameters A1, B, C1 and A2, B, C2, the random
variable T 1 + T 2 can be approximated by gamma distribution with the
parameters A1 = A2, B, C1 = C2.
The formula for mean and variance is:
ET = A + C ∗ B (3 )
D 2T = C ∗ B 2 (4 )
The mode exists only for the shape parameter C> = 1 and can be expressed:

M °T = A + B ∗ (C − 1). (5 )

Probability Papers for Gamma Distribution

The use of probability paper (function net of distribution function) for gamma
distribution in the classical graphical estimation of the parameters is difficult.
For every shape parameter C' the mutable probability paper has the
distribution function F(t: A, B, C = C'). This probability paper is used to make a
goodness-of-fit test for gamma distribution F(t: A, B, C = C') in the classical
graphical analysis, in particular by doubly censored samples. The quantiles of
order F and shape parameter C for gamma distribution are given by the
following formula:
χ 2 2C , F
γ C , F= (6 )
2

where χ22C , F is the quantile of order F with the m = 2 * C degrees of freedom

of chi square distribution.
In modern probability theory the chi square distribution is the special case of
gamma distribution. In this case the shape parameter is m = 2*C, an optional
real number. These quantiles are given in Tables[1] for 0.1 to 3 with step 0.1, for Parameters in
3.2 to 7 with step 0.2, for 7.5 to 9.5 with step 0.5 and for 10 to 30 with step 1. The Gamma
order F is given 0.0001, 0.0005, 0.001, 0.005, for 0.01 to 0.1 with the step 0.01, for Distribution
0.2 to 0.9 with the step 0.1 and 0.25, 0.75, for 0.91 to 0.99 with the step 0.01, 0.995,
0.999, 0.9995, 0.9999.
These quantiles can be calculated with the aid of a numerical program from
the following formula[2]: 29

2 1 2
χm
2
, F = m + uF 2m + (u2F − 1) + (u3 F − 7u F ) – (3u 4 F
3 9 2m 405m
1
+ 7u 2 F − 16 ) + ( 9u5 F + 256u3 F − 433u F ) (7 )
4860m 2m
where u F is the quantile of order F of standardized normal distribution
Π (t: µ = 0. σ = 1).
For m> = 4 by F = 0.99 or m> = 2 by F = 0.95 the error of the approximation
is smaller than 0.01.
From the mathematical viewpoint, the probability paper for gamma
distribution is the Cartesian co-ordinate system Oxy, where the scale of the
abscissa axis is linear x = t and the ordinate axis is transformed y = γC, F .

Scale of the Ordinate

The constant of the ordinate axis Oy (OF) with the length LY and for the
minimum Fmin and Fmax value of the probability function is calculated from the
following formula:
LY LY 2 * LY
KY = = = . (8 )
ymax – ymin γ C, Fmax – γ C, Fmin χ 22C , Fmax – χ 22C , Fmin

The ordinate value SY(F) for received distribution function F(t) = F is

calculated from the following formula:

SY ( F ) = KY ∗ γ C , F = ( KY ∗ χ 2 2 C , F ) / 2 (9 )

In the case Fmin = 0 is γC, 0 = 0.5 χ22c, 0 = 0.

Scale of the Abscissa

The constant of the abscissa axis Ox (Ot) with the length LX and for the
minimum tmin and maximum tmax value of the random variable is calculated
from the following formula:
IJQRM
KX = LX /( x max – x min ) = LX /(tmax – tmin ). (10 )
11,8
The abscissa value SX(t) for received value of random variable t is calculated
from the following formula:

SX (t ) = KX ∗ x = KX ∗ t . (11)
30
The general equation for a straight line of distribution function is:
y = (x – A) / B (12 )
For y = 0, x = A and for y = 1, x = A+B. These points (A, 0) and (A+B, 1)
estimate the parameters A and B in the Cartesian co-ordinate system Oxy.

Example 1
From the laboratory reliability testing of electrical bulbs the following times, in
hours, between failures, was observed: 375, 402, 430, 470, 531, 605, 690, 822,
1,025, 1,420.
We use the following initial estimates for the shape parameter C = 3 (Figure
1), C = 2, C = 1 (Figure 2), C = 0.8, C = 0.7, C = 0.6. Graphical presentation of
this data and distribution function on the paper for gamma (Erlang)
distribution F(t: A, B, C = 3) and for exponential distribution (C = 1) F(t: A, B)
are shown in Figures 1 and 2. On the probability paper F(t: A, B, C = 0.7) the
goodness-of-fit test is positive. The times between failures is distributed
gamma with C = 0.7.
For graphical analysis of experiment data, the probability paper of the
gamma distribution for the shape parameter C = 0.7 is calculated;
shape parameter C = 0.7;
length of the ordinate axis LY = 161.3mm;
minimum value Fmin = 0;
maximum value of the ordinate Fmax = 0.95.
The parameters A and B on this probability paper can be estimated with the
graphical method.
With Table 3[1] the following can be stated:
ymin = 0.5*χ21.4, 0 = 0
ymax = 0.5*χ21.4, 0.95 = 4.7652.

The constant of the ordinate axis KY is calculated from formula (8)

KY = 161.3mm/(4.7652–0) = 67.7mm.
With Table 3[1] it can be stated, for instance, that for F = 0.6 and F = 0.7, values
χ21.4, 0.6 = 1.1570, χ21.4, 0.7 = 1.6201. The calculated values of the ordinates are
SY(0.6) = 67.7*1.1570/2 = 39.16mm
SY(0.7) = 67.7*1.6201/2 = 54.84mm
 Parameters in
Date and distribution function on the probability paper for gamma distribution F(t: A, B,
C = 3). Estimation of the shape parameter with the method of successive Gamma
approximation. Use of the following initial estimates C = 3, 1, 0.8, 0.7, 0.6
Distribution
0.95

∝
3;F

0.90 31
5

0.8
4

0.7

0.6 3

0.5
0.4
2
0.3

0.2
0.1 1
0.05
0.01
0.001
0
0
0 500 1,000 t (h) 1,500

F(t:A;B;C = 3)
Figure 1.

and are shown in Figures 3 and 4, which demonstrate the graph of the
probability paper for gamma distribution F(t: A, B, C = 0.7).
We draw a horizontal line from the point with the ordinate SY(F) = KY*1 =
67.7mm. With the aid of this line the sum of the parameters A+B can be
estimated graphically. The point estimator for mean ET gives a horizontal line
with the ordinate SY(F) = C * KY = 0.7 * 67.7 = 47.39mm (Figure 4). The
parameters can be estimated as (Figure 4):

( A + B ) = SX ( A + B ) / KX (13 )
A = SX ( A ) / KX (14 )
B = ( A + B ) – A. (15 )
The method of least squares. The times to failures (or between failures) tu(i), i =
1, 2,…, R, and the censored times tc( j), j = 1, 2,…, N–R, can be ordered in
numerical sequence:
tu(1) = tu(2 ) =< ... =< tc(1) =< ... =< tu(i ) =< ... =< tc( j ) =< ... (16 )
IJQRM Date and distribution function on the probability paper for exponential distribution F(t; A, B,
11,8 C =1). Estimation of the shape parameter with the method of successive approximation.
Use of the following initial estimates C = 3, 1, 0.8, 0.7, 0.6

0.95 3

∝
1;F

32
0.9

0.7
0.8

0.7

1
0.6

0.5

0.4
0.3
0.2
0.1
0 0
0 500 1,000 t (h) 1,500
F(t:A;B;C = 1)
Figure 2.

For every realization of the random variable tu(i), the medium rate (increment)
d(i) of running number K(i) is calculated from the formula:

N + i – K (i – 1 )
d (i ) = (17 )
N + 1 – L (i )
where N = the total number of date points, K(i – 1) = the medium running
number of the previous failure, L(i) = i + j – 1 = the number of realizations and
censored values for the values smaller than tu(i).
The medium running number for every realization tu(i) can be calculated
from the formula:

K (i ) = K (i – 1) + d (i ). (18 )

For every time to failure tu(i), the value of empirical distribution function can be
calculated with the formula:

F [tu(i )] = [ K (i ) – 0.375] /( N + 0.25 ). (19 )

 ●
Parameters in
0.95
Gamma
●
Distribution
●
●
●

0.9 ● 33

0.8 ●

0.7 ●

SY(0.7) = 54.8mm
0.6 ●
= 39.2mm
SY(0.6)

0.5 ●

0.4 ●
0.3 ●
0.2 ●
Figure 3.
●
0 Method of the Draw of
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9
F Probability Paper for
F(t:A; B; C = 0,7) Gamma Distribution
F(t: A, B, C = 0.7)

For estimation from complete and singly censored samples, the medium rate d(i)
equals 1, and the Johnson method[3] reduces to the classical method of least
squares. The applicability of the Johnson method for a doubly censored sample
from example 4 is presented in Table I. We transform these calculated values
F[tu(i)] from the formula:
y(i ) = γ C , F [tu( i )] . (20 )

The method of least squares, which minimizes the squares of the differences
between actual y(i) (20) and fitted
y ′( i ) = p ∗ x ( i ) + q ( 21)

function values, is the most common mathematical technique used to do this.

This method can be written as:

{ [ ]} = minimum
R 2
M = ∑ y ( i ) – p ∗ x (i ) + q (22 )
i =1
where R is the number of failures. From a set of x(i) and y(i) paired observations,
the desired coefficients can be computed as:
IJQRM Date and distribution function in the probability paper for gamma
11,8 distribution F(t: A, B, C = 0.7). Graphical estimation of the parameters in
the three-parameter gamma distribution
0.95

∝
0.7;F

34 2

0.9

0.8

0.7

KY = 67.7mm
0.6

C·KY = 47.4mm
SX(A
SX B)) = 85mm
(A + B
0.5
0.4
SX(A) = 37mm
0.3
0.2 ET A+B
0 0
0 500 1,000 t(h) 1,500

F(t:A;B;C = 0:7)
A = 370 B = 480
ET = 706
Figure 4.

R
∑ [ x (i ) – x ] ∗ [ y (i ) – y ]
i =1
p= (23 )
R
2
∑ [ x (i ) – x ]
i =1

q = y – p∗ x (24 )
1 R 1 R
where χ ∑ x (i ) and y = ∑ y(i ) are the means of their respective data sets.
R i =1 R i =1
For the estimate a goodness-of-fit test of the remains variance is used. The
formula for this remains variance is:
S 2 = M /( R – 2 ). (25 )
 Parameters in
tu(i) – A
i j i+j tu(j) – A L(i) K( i – 1) d(i) K(i) F[tu(i) – A] Gamma
Distribution
1 1 +120 0 0.000 1.000 1.000 0.0124
2 2 +120 1 1.000 1.000 2.000 0.0323
3 3 +207 2 2.000 1.000 3.000 0.052
4 4 +214 3 3.000 1.000 4.000 0.072
5 5 +252 4 4.000 1.000 5.000 0.092
35
6 6 +294 5 5.000 1.000 6.000 0.112
7 7 +379 6 6.000 1.000 7.000 0.132
8 8 +379 7 7.000 1.000 8.000 0.152
9 9 +379 8 8.000 1.000 9.000 0.172
10 10 +379 9 9.000 1.000 10.000 0.192
11 11 +406 10 10.000 1.000 11.000 0.211
12 12 +425 11 11.000 1.000 12.000 0.231
13 13 +448 12 12.000 1.000 13.000 0.251
14 14 +458 13 13.000 1.000 14.000 0.271
15 15 +540 14 14.000 1.000 15.000 0.291
16 16 +600 15 15.000 1.000 16.000 0.311
17 17 +606 16 16.000 1.000 17.000 0.331
18 18 +606 17 17.000 1.000 18.000 0.351
19 19 +765 18 18.000 1.000 19.000 0.371
20 20 +795 19 19.000 1.000 20.000 0.391
21 21 +808 20 20.000 1.000 21.000 0.410
22 22 +881 21 21.000 1.000 22.000 0.430
23 23 +889 22 22.000 1.000 23.000 0.450
24 24 +948 23 23.000 1.000 24.000 0.470
25 25 +950 24 24.000 1.000 25.000 0.490
26 26 +1015 25 25.000 1.000 26.000 0.510
27 27 +1066 26 26.000 1.000 27.000 0.530
28 28 +1139 27 27.000 1.000 28.000 0.550
29 29 +1139 28 28.000 1.000 29.000 0.570
30 30 +1149 29 29.000 1.000 30.000 0.590
31 31 +1149 30 30.000 1.000 31.000 0.609
1 32 –1200
2 33 –1200
32 34 +1527 33 31.000 1.111 32.111 0.632
33 35 +1600 34 32.111 1.111 33.222 0.654
34 36 +1680 35 33.222 1.111 34.333 0.676
3 37 –1680
4 38 –1680 Table I.
5 39 –1680 Summary of the (+) –
6 40 –1680 Times between
7 41 –1680 Failures tu(i) and (–) –
8 42 –1680 Censored Times tc(j) in
9 43 –1680 Hours from Laboratory
10 44 –1680 Reliability Testing of
11 45 –1680 Electric Irons for
12 46 –1680 Location Parameter
13 47 –1680 A = 0. The Use of the
14 48 –1680 Johnson Method for
15 49 –1680 Doubly Censored
16 50 –1680 Samples from
Example 4
IJQRM The use of the numerical program for estimation of
11,8 the three-parameter gamma distribution with known
shape parameter C. The applicability of the proposed
method to estimate all variants of the parameters for
data from example 2

A <tu(1) = 375
S B A
36 B = 451.42
A = 350.57 450

350
0.020

S
400

300
0.015

A
C>0.65

350
B
250
0.010

S Smin C = 0.7813 S S

0.6 0.8 1 1.2 1.4 1.6 C

Figure 5.

From the known shape of parameter C, the location and scale parameters can be
expressed;
A=q/ p (26 )
B = 1 / p. (27 )

Example 2
For the data from example 1, the Johnson method can be used effectively to find
the parameters of gamma distribution. We use the following initial shape
parameters, C = 1, 2, 3 … with step 1. The numerical progam has computed and
printed the results of estimation: parameters A for A < tu(1) = 375h, B and S –
square root of the remains variance. After the location of the minimum of the S
in the interval (0, 1)], values C = 09, 0.8, .. are entered with step 0.1 and next the
values C = 0.71, 0.72, … with step 0.01. Figure 5 summarizes the calculated
variants of the parameters of gamma distribution with known shape parameter
C. Finally the method calculates one variant of the parameter C = 0.7813, B =
 Graphical presentation of data, parameters and distribution function on
Parameters in
probability paper F(t–A: O, B, C = 0.7813) for gamma distribution. Gamma Gamma
distribution of time to failure of the bulbs from example 2 on the screen of
IBM PC computer Distribution

37
0.900

0.800

0.700

0.600

0.500
0.400
E(T–A)=C*B = 352.7
0.300 B
0.200 t–A
0.100
0.010
0.000 0 100 200 300 400 500 600 700 800 900 1,000

Gamma distribution
F(t–A: A = 0, B, C = 0.7813)
A = +350.6
B = 451.42
C = 0.7813
ET = 703.3
Figure 6.

451.42h, A = 350.57h for minimum S = 0.00857080 (Figure 6). The mean time of
failure of the bulbs is MTBF = ET = 703.3h.

Example 3
Table I summarizes the times between failures tu(i) and censored times tc ( j) in
hours from laboratory reliability testing of electric irons. The time between
failures can be approximated by a two-parameter gamma distribution with
known location parameter A = 0. Calculate the scale and shape parameters. The
Johnson method can be used effectively to find the parameters of the gamma
distribution from a double censored sample.
The numerical program for two-parameter distribution orders the times from
smallest to largest absolute value. After entering values of the shape parameter
C = 1, 2, 3,…with step 1, the program calculates and prints results of the
estimation: location parameter A for A < tu(1) = 120h, B, S – square root of the
remains variance on the screen. After the location of the minimum of the S in the
closed interval C [1, 2] the values C = 1.1, 1.2, 1.2, … 1.9 are entered with step
IJQRM The use of the numerical program for estimation of
the two-parameter gamma distribution with known
11,8 shape parameter C. The applicability of the proposed
method of estimation of all variants of the
parameters for the data from example 3

S
B
0.0580
38
B = 1,532.51
1,500
B = 1,418.58

0.0575

1,000

S min
0.0570
S C=1 C = 1.053 S
1 1.05 1.1 C
Figure 7.

Graphical presentation of data, parameters and distribution function on probability paper

F(t–A: O, B, C = 1.053) for gamma distribution. Gamma distribution of time between
failures of electric irons from example 3 on the screen of IBM PC computer

0.700

0.600

0.500

0.400

0.300

0.200

0.100 E(T–A) =C*B =1493.8

B t–A
0.010
0.000
0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000

Gamma distribution
F(t–A: A = 0, B, C = 1.0530)
A = +0.0
B = 1,418.58
C = 1.0530
ET = 1,493.8
Figure 8.
 Graphical presentation of data, parameters and distribution function on probability paper
F(t–A: O, B, C = 1) for gamma distribution. Exponential distribution of time between
Parameters in
failures of electric irons from example 3 on the screen of IBM PC computer Gamma
0.700
Distribution

0.600
39

0.500

0.400

0.300

0.200

0.100 E(T–A) = C*B =1532.5

t–A
0.010
0.000
0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000

Gamma distribution
F(t–A: A = 0, B, C =1,000)
A = +0.0
B = 1,532.51
C = 1.000
ET = 1,532.5
Figure 9.

Graphical presentation of data, parameters and distribution function on

probability paper F(t: O, B) for exponential distribution. Exponential
distribution of time between failures of electric irons from example 3 on
the screen of IBM PC computer

0.700

F(1,500)=0.623

0.600

0.500

0.400

0.300

0.200

0.100
t
A A+B
0
0 200 400 600 800 1,000 1,200 1,400 1,600 1,800
Exponential distribution F(t : A, B)
A = 0 B = 1,535.5
Figure 10.
IJQRM Graphical presentation of data, parameters and distribution function on probability paper F(t–A:
O, B, C = 1.5821) for gamma distribution. Gamma distribution of time to failure of the bulbs in
11,8 domestic electrical appliances from example 4 on the screen of IBM PC computer
+

+
0.990
+

40 +
+

+
+
+
+
+
+
++
+
+
++ +
+++ ++
0.900 ++
++
++
+++
++
+
++
++ ++++
+++
0.800 + +++
+ ++
+
++++
+
+
+
++
+++++
0.700 +++
++++
++++
+
0.600 +
++++++
+++++
+++
0.500 ++++++
++++
0.400 +++++
+ ++++++
+++
+
++
+
+++
+
+++
0.300 ++++
+ ++
+++
++++ ++++++
++
0.200 ++++++++++++
++ B E(T–A) =C*B = 547.1 t–A
0.100 ++
+++++
+ +
++
0.010 ++++
++
0.000 0 500 1,000 1,500 2,000
Gamma distribution
F(t – A: A =0, B, C)
A = +0.0
B = 345.80
C = 1.5821
ET = 547.1
Figure 11.

0.1 and next the values C = 1.01, 1.02,…,1.09 with step 0.01. Finally the program
computes variants of the parameters for the minimum, S = 0.05707582 (Figure
7), B = 1418.58h, C = 1.053 (Figure 8). In this case the parameters in the one-
parameter exponential distribution (C = 1) B = 1, 523.51h, S = 0.05726788 can
be calculated (Figure 9). From the mathematical viewpoint, the exponential
distribution F(t: 0, 1,532.51, 1) = F(t: 1,532.51) may also be applied effectively by
successive approximations of the time between failures. The mean time
between failures of electric irons is MTBF = ET = B = 1,532.51h.
In this case the parameter of exponential distribution can be calculated with
the aid of the Johnson method on the exponential probability paper. The method
of least squares, which minimizes the squares on this paper, gives B =
1,535.46h, S = 0.06525799 (Figure 10). In this case the mean time between
failures is MTBF = ET = B = 1.535,45h.
The difference of scale parameters 1,535.46-1,532.51 = 2.95h is the error of the
proposed probability paper for gamma distribution.

Example 4
Figure 11 shows the results of laboratory reliability testing of bulbs in domestic
electrical appliances. The Johnson method calculates one variant of the
parameters in the gamma distribution: A = 0, B = 345.80, C = 1.5821, Smin =
 Parameters in
Gamma
Distribution

41

Figure 12.
Listing of Program for
Simplified Maximum
Likelihood Estimation
of the Scale B and
Shape C Parameters in
the Two-parameter
Gamma Distribution
from Complete Samples
IJQRM
11,8 Graphical presentation of data, parameters and distribution function on
probability paper F(t–A: O, B, C = 1.6966) for gamma distribution. Gamma
distribution of time to failure of electric appliances from example 5 on the
screen of IBM PC computer

42
0.900

0.800

0.700

0.600

0.500
0.400 E(T–A) = C*B = 409.6
0.300 B
0.200 t–A
0.010 0.100
0.000 0 200 400 600 800 1000 1,200 1,400

Gamma distribution
F(t–A: A = 0, B, C = 0.6966)
A = +0.0
B = 588.02
C = 0.6966
ET = 409.6
Figure 13.

0.12025640. The mean time of failure of bulbs in domestic electrical appliances

is MTTF = ET = B*C = 547.09h.
Simplified maximum likelihood estimation from complete samples. The
values of parameters of the two-parameter gamma distribution from complete
samples can be calculated from the formula[4-7]:
( E / A ) 0.9885 exp[–0.187( E − A )], for A < E
C=
( E / A )
0.8699,
for A >= E (28 )
where
N 1 N
A = A[t (i ), N ] = ln1N ∑ t (i ) – – ∑ ln t (i ). (29 )
N i =1
i =1
N = total number of data points and number of failures, E is Euler’s constant –
a value of 0.577215664 is used for this problem. The relative error of
approximation is not greater than 0.8 per cent.
 Given a value of the shape parameter C, the following relationship is used by Parameters in
estimating the scale parameter: Gamma
1 N Distribution
B= ∑ t (i ). (30 )
N ∗C i =1

With this method the parameters in the three-parameter gamma distribution 43

for the known location parameter A can be estimated.
A listing of the program for this simplified maximum likelihood estimation of
the scale B and shape C parameters in the two-parameter gamma distribution
from complete samples is shown in Figure 12. The following example 5
illustrates the use of this program.

Example 5
From laboratory reliability testing of electrical appliances, the following times
between failures in hours were observed: 6, 25, 65, 110, 190, 310, 430, 600, 870,
1,490.
With the simplified maximum likelihood method parameters B and C were
estimated in two-parameter gamma distribution with known location
parameter A = 0.
This method calculates the following parameters, B = 588.0226, C =
0.696571826. Graphical presentation of data, parameters and distribution
function on probability paper F(t – A: 0, B, C = 0.6966) for gamma distribution
on the screen of an IBM PC computer is shown in Figure 13.
References
1. Mardia, K.U. and Zemroch, P.J., Tables of the F– and Related Distributions with Algorithms,
Academic Press, London, New York, NY, San Francisco, CA, 1978.
2. Schulz, W., “Naeherungsformeln zu Berechnung von Quantilen haeufig benoetigter
Pruefverteilungen der mathematischen Statistik”, Rechentechnik-Datenverarbeitung 13
(1976) 5, S. pp. 34-6.
3. Johnson, L.G., The Statistical Treatment of Fatigue Experiments, Elsevier Publishing Co.,
Amsterdam, London, New York, NY, 1964.
4. Martynienko, Ju. N., “Uskorennaja ocenka parametrov gamma-raspredelenija”, Nadeznost’
i Kontrol’ Kacestva, Moskva, No. 12, 1977.
5. Shenton, L.R. and Bownman, K.O., “Further Remarks on Maximum Likelihood Estimation
for Gamma Distribution”, Technometrics, Vol. 14 No. 3, 1972, pp. 725-33.
6. Stasy, E.W., “Quasymaximum Likelihood Estimation for Two-parameter Gamma
Distributions”, IBM Journal of Research and Development, Vol. 17 No. 2, 1973, pp. 115-24.
7. Rudych, G.A., “Ocenki maksimalnogo pravdopodobija dlja dvuchparametriceskogo
gamma raspredelenija”, Nadeznost’ i Kontrol’ Kacestva Moskva, No. 1, 1977.