AbstractThis work considers the design of a Bayesian reliability acceptance sampling plan (RASP) under a hybrid censored life test for the products sold under an optional warranty. The consumer and manufacturer agree on a common lifetime distribution of the product. However, they differ in the assessment of the prior distributions because of the adversarial nature of the consumer and manufacturer. The consumer takes a decision based on his/her utility and prior belief without a warranty offer by the manufacturer. If the decision is rejection, the manufacturer provides warranty offer to the consumer. If the consumer rejects the lot with a warranty, the manufacturer conducts a life test under the hybrid censoring scheme (HCS) and provides lifetime information to the consumer. The consumer updates his/her belief based on lifetime information provided by the manufacturer. The consumer then takes a decision of acceptance or rejection of the lot based on updated beliefs. The task of the manufacturer is to determine the optimal life testing plan.
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