An optimal stopping time for a power law process

Abstract

Exact reliability analysis for complex repairable systems are usually difficult because of the complicated failure process that can result from repair policy. A common approach in practice is to use a simplified process such as the Power Law process which, although not exact, yields useful practical results. In this paper we consider the problem of determining a stopping time when estimating parameters of a Power Law process. The Bayes method is used in order to obtain an optimal time.

Keywords:

• Non-homogeneous Poisson process
• Power Law process
• Loss function
• Bayes estimate