Sequential variable sampling plan for normal distribution [An article from: European Journal of Operational Research]

This digital document is a journal article from European Journal of Operational Research, published by Elsevier in 2006. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

Description:
In this paper, a sequential variable sampling plan is studied. Suppose that the quality of an item in a batch is measured by a normally distributed random variable with a known variance, but the mean is unknown with a normal prior distribution. Then by using Bayesian approach and considering a Markov decision process, the optimality equations for the minimum total expected cost are formulated. We show that an optimal decision rule will have a control limit structure. An algorithm for a sequence of @e-optimal decisions is introduced. Then, the statistical procedure for conducting the sequential sampling plan is presented.