Abstract
Let
$\{Y_{1},\ldots ,Y_{n}\}$
be a collection of interdependent nonnegative random variables, with
$Y_{i}$
having an exponentiated location-scale model with location parameter
$\mu _i$
, scale parameter
$\delta _i$
and shape (skewness) parameter
$\beta _i$
, for
$i\in \mathbb {I}_{n}=\{1,\ldots ,n\}$
. Furthermore, let
$\{L_1^{*},\ldots ,L_n^{*}\}$
be a set of independent Bernoulli random variables, independently of
$Y_{i}$
's, with
$E(L_{i}^{*})=p_{i}^{*}$
, for
$i\in \mathbb {I}_{n}.$
Under this setup, the portfolio of risks is the collection
$\{T_{1}^{*}=L_{1}^{*}Y_{1},\ldots ,T_{n}^{*}=L_{n}^{*}Y_{n}\}$
, wherein
$T_{i}^{*}=L_{i}^{*}Y_{i}$
represents the
$i$
th claim amount. This article then presents several sufficient conditions, under which the smallest claim amounts are compared in terms of the usual stochastic and hazard rate orders. The comparison results are obtained when the dependence structure among the claim severities are modeled by (i) an Archimedean survival copula and (ii) a general survival copula. Several examples are also presented to illustrate the established results.