Regime-Switching Temperature Dynamics Model for Weather Derivatives

Table 7

Estimated parameters of Normal, HYP, GH, NIG, and VG distributions fitted to Bole and Tamale DAT residuals. The parameters are estimated using the maximum likelihood method.

	Normal	HYP	GH	NIG	VG
Bole
	–	–	3.2875	–	0.0144
	–	1.7178		1.5010	0.4968
	–	-0.3921	-0.1839	-0.4087	-0.0140
		0.6179	0.4638	0.6413	0.5004
	1.2995	1.6783		2.2664	0
Tamale
	–	–	3.7329	–	0.0101
	–	1.6520		1.5212	0.5006
	–	-0.5406	-0.2570	-0.5807	-0.0097
		1.1181	0.6802	1.1893	0.4793
	1.5431	2.2130		2.8794	0