Article ID: | iaor20051878 |
Country: | Netherlands |
Volume: | 155 |
Issue: | 3 |
Start Page Number: | 683 |
End Page Number: | 694 |
Publication Date: | Jun 2004 |
Journal: | European Journal of Operational Research |
Authors: | Li Kim-Hung, Choy S.T.B., Chen Jianwei |
Keywords: | statistics: decision |
The sampling acceptance scheme with censoring is one of the important life inspection problems. In this article, a general model of sampling acceptance plan for the exponential distribution with exponentially distributed random censoring is presented and investigated using Bayesian decision theory. We consider a loss function which includes the sampling cost, time-consuming cost and decision loss to determine the optimal sampling acceptance plan. Under mild assumptions, the optimal Bayes rule can be proved to be of a monotonic form. Moreover, we obtain optimal Bayes rules and explicit expressions of the Bayes risk for two special decision loss functions. Finally, a numerical example is given to demonstrate the model.