Bayesian Estimation of Products with Wiener Process Degradation Based on Linex Loss Function

Abstract

Bayesian estimation for parameters and the reliability of products for which the performance degradation process modeled by wiener process are obtained based on linex loss function. Using both non-informative and conjugate prior distribution, several Bayesian estimates under squared error and linex loss functions are computed. Finally, these Bayesian estimates are compared through the mean squared error (MSE) based on Monte Carlo simulation study. According to these comparisons, it is shown that Bayesian estimators with linex loss function are more flexible.