Approximate bayes estimation of reliability of two parameter inverse gaussian distribution

Abstract

This paper extends the result of Padgett (1981) and gives a Bayes estimate of the reliability function of two-parameter inverse Gaussian distribution using Jeffreys' non-informative joint prior and a squared error loss fun ction . A numerical example is given. Based on a Monte Carlo simulation, Bayes estimator of reliability is compared with its maximum likelihood counterpart.

Keywords:

• inverse Gaussian distribution
• maximum likelihood
• mean squared error
• simulation
• prior/posterior distribution
• reliability function