Pareto analysis for the lifetime performance index of products on the basis of progressively first-failure-censored batches under balanced symmetric and asymmetric loss functions

ABSTRACT

One of the most important topics in manufacturing industries is the evaluation of performance lifetimes of products. Based on a given lifetime performance index, this paper deals with evaluating the performance of a process subject to a given lower specification limit. We confine ourselves to the progressively first-failure-censored data coming from a common Pareto distribution. With both the Bayesian and the non-Bayesian approaches being investigated here, we pay more attention to Bayesian estimators under balanced type loss functions. The results are presented under the balanced versions of two well-known loss functions, namely the squared error loss and the Varian's linear-exponential (LINEX) loss. Moreover, based on the Bayesian and the non-Bayesian approaches, the problem of testing hypotheses on the lifetime performance index is studied. Also, a simulation study is performed to assess the obtained results. Finally, two illustrative examples are given.

KEYWORDS:

• Balanced type loss function
• Bayesian estimate
• lifetime performance index
• Pareto distribution
• progressively first-failure-censored batches

Disclosure statement

No potential conflict of interest was reported by the authors.

ORCID

Mohammad Vali Ahmadi http://orcid.org/0000-0002-7921-2684

Mahdi Doostparast http://orcid.org/0000-0002-4614-8137