Poisson hurdle model for monitoring the inflation of zeros

Abstract

AbstractSeveral control charts have been developed in the literature to monitor zero inflation using classic and simple linear regression models with covariates. Simple linear regression models may not be appropriate, especially when the response variable is skewed or count. When the response distribution follows the exponential family; however, the generalized linear model (GLM) gives a more flexible approach. The goal of this study is to use the Poisson hurdle model to provide GLM‐based Shewhart‐type control charts. To calculate monitoring statistics, the Pearson residuals (PRs) are obtained using the Poisson hurdle model. A detailed Monte Carlo simulation analysis is used to analyze the attributes of the suggested charts. Besides this, a real‐life data set is used to show the practical application of the charts.