On Bayesian EWMA control charts under different loss functions |
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| Authors: | Salma Riaz Muhammad Riaz Amna Nazeer Zawar Hussain |
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| Affiliation: | 1. Department of Statistics, Quaid‐i‐Azam University, Islamabad, Pakistan;2. Department of Mathematics and Statistics, King Fahd University of Petroleum and Minerals, Dhahran, Saudi Arabia;3. Department of Mathematics, COMSATS Institute of Information Technology, Islamabad, Pakistan |
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| Abstract: | The motivation for this study is to analyze Bayesian exponentially weighted moving average (EWMA) control chart under 3 loss functions namely, SELF, LLF, and PLF. Informative priors (normal and mixture of normal) and non‐informative priors (Uniform and Jefferys) are considered for the analysis. The performance of Bayesian EWMA control chart using posterior and posterior predictive distribution scheme has been evaluated using average run length (ARL) and standard deviation run length (SDRL) as performance measures. Monte Carlo simulations are used to compute the performance measures for different values of smoothing constant. An illustrative example is also presented for practical considerations of Bayesian EWMA control chart. |
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| Keywords: | average run length Bayesian approach exponentially weighted moving average posterior distribution prior distribution |
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