Sequential Sampling Plans Based on Information Theory

Abstract

In this paper an “evidence equation” based on information theory is derived, discussed and illustrated. This equation is used for making decisions about a product's quality. The results of applying this evidence equation-sequential sampling technique to data from a transmission assembly line of a major car manufacturer are presented and also compared to the results obtained with a commonly used Wald sequential sampling plan. Although this technique is not commonly used, it is shown to be quite simple, practical and relatively effective.

• Decits
• “Evidence” Equation
• Information of an Event
• Odds of an Event
• Evidence of an Event
• Level of Confidence

Additional information

Notes on contributors

Giora Baram

Dr. Baram is an Assistant Professor of Operations Analysis at the College of Business Administration, The University of Toledo, Toledo, Ohio.