Efficient Modeling of the Energy Sector Using a New Bivariate Copula

Copulas are a useful tool to generate bivariate distributions from the univariate marginals. This method is also useful to generate bivariate families of distributions. In this paper, a new copula has been proposed. Some useful properties of the proposed copula have been studied, including the conditional copula. Various dependence measures for the proposed copula have been obtained. A multivariate extension of the proposed copula is also suggested. The proposed copula has been used to obtain a new bivariate family of distributions. Some useful properties of the obtained bivariate family are studied, which include conditional distributions, joint and conditional moments, joint reliability and hazard rate functions, parameter estimation, etc. A specific member of the proposed family has also been discussed. The proposed bivariate distribution has been used to model the energy sector data of the Kingdom of Saudi Arabia.