Bayesian and non‐Bayesian inference of the process capacity index Spk′$S^{\prime }_{pk}$ under progressive type‐II right censored scheme

Abstract

AbstractProcess capability indices (PCIs), are widely used to gauge how well a process performs within its requirements. While greater PCIs are indicative of improved process “quality,” they do not necessarily translate into lower rejection rates. Therefore, using a loss‐based PCI to gauge process capability makes more sense. In this paper, the PCI has been considered for normal random variable. The article attempts to study the classical and the Bayesian estimation of for type‐II progressive right censored sample under symmetric as well as asymmetric loss functions, namely squared error loss function, and LINEX loss function, respectively. The Markov chain Monte Carlo simulation technique has been efficiently used here to have the approximate solution for . Through an extensive Monte Carlo simulation study along with two real life examples related to electronic industry, we compare the performances of the classical and the Bayes estimates based on symmetric and asymmetric loss functions and compared among the asymptotic confidence interval and highest posterior density credible intervals, in terms of average width and corresponding coverage probabilities of , respectively.