Estimation of the parameters of an exponential distribution based on record
data has been treated by Samaniego and Whitaker (1986) and Doostparast (2009).
Recently, Doostparast and Balakrishnan (2011) obtained optimal confidence
intervals as well as uniformly most powerful tests for one- and two-sided
hypotheses concerning location and scale parameters based on record data from a
two-parameter exponential model. In this paper, we derive optimal statistical
procedures including point and interval estimation as well as most powerful
tests based on record data from a two-parameter Pareto model. For illustrative
purpose, a data set on annual wages of a sample production-line workers in a
large industrial firm is analyzed using the proposed procedures.