Effects of misspecification of the loss function on the economic-statistical design of the synthetic X̄ chart

Wai Chung Yeong; Michael Boon Chong Khoo; Sok Li Lim; Wei Lin Teoh

doi:10.1109/I4CT.2015.7219541

Effects of misspecification of the loss function on the economic-statistical design of the synthetic X̄ chart

Wai Chung Yeong, Michael Boon Chong Khoo, Sok Li Lim, Wei Lin Teoh

School of Mathematical & Computer Sciences

Research output: Chapter in Book/Report/Conference proceeding › Chapter

Abstract

The optimal choice of design parameters has a huge impact on a control chart's performance. The economic-statistical design balances the economic and statistical performance of a chart, by selecting design parameters which minimize the cost subjected to statistical constraints. To compute the quality loss as a result of deviations from the target value, quality loss functions are often used. However, practitioners may incorrectly choose the wrong type of loss function to describe the quality loss. This paper studies the effects when the type of loss function is misspecified. This study is done on the synthetic X chart. We focus our attention on the linear, quadratic and exponential loss functions. © 2015 IEEE.

Original language	English
Title of host publication	2015 International Conference on Computer, Communications, and Control Technology
Publisher	IEEE
Pages	77-81
Number of pages	5
ISBN (Electronic)	978-1-4799-7952-3
DOIs	https://doi.org/10.1109/I4CT.2015.7219541
Publication status	Published - 27 Aug 2015
Event	2015 International Conference on Computer, Communications, and Control Technology - Kuching, Malaysia Duration: 21 Apr 2015 → 23 Apr 2015

Conference

Conference	2015 International Conference on Computer, Communications, and Control Technology
Abbreviated title	I4CT
Country/Territory	Malaysia
City	Kuching
Period	21/04/15 → 23/04/15

Keywords

economic-statistical design
misspecification
quality loss function
synthetic chart

Access to Document

10.1109/I4CT.2015.7219541

Cite this

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title = "Effects of misspecification of the loss function on the economic-statistical design of the synthetic {\=X} chart",

abstract = "The optimal choice of design parameters has a huge impact on a control chart's performance. The economic-statistical design balances the economic and statistical performance of a chart, by selecting design parameters which minimize the cost subjected to statistical constraints. To compute the quality loss as a result of deviations from the target value, quality loss functions are often used. However, practitioners may incorrectly choose the wrong type of loss function to describe the quality loss. This paper studies the effects when the type of loss function is misspecified. This study is done on the synthetic X chart. We focus our attention on the linear, quadratic and exponential loss functions. {\textcopyright} 2015 IEEE.",

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Yeong, WC, Khoo, MBC, Lim, SL & Teoh, WL 2015, Effects of misspecification of the loss function on the economic-statistical design of the synthetic X̄ chart. in 2015 International Conference on Computer, Communications, and Control Technology. IEEE, pp. 77-81, 2015 International Conference on Computer, Communications, and Control Technology, Kuching, Malaysia, 21/04/15. https://doi.org/10.1109/I4CT.2015.7219541

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AU - Khoo, Michael Boon Chong

AU - Lim, Sok Li

AU - Teoh, Wei Lin

PY - 2015/8/27

Y1 - 2015/8/27

N2 - The optimal choice of design parameters has a huge impact on a control chart's performance. The economic-statistical design balances the economic and statistical performance of a chart, by selecting design parameters which minimize the cost subjected to statistical constraints. To compute the quality loss as a result of deviations from the target value, quality loss functions are often used. However, practitioners may incorrectly choose the wrong type of loss function to describe the quality loss. This paper studies the effects when the type of loss function is misspecified. This study is done on the synthetic X chart. We focus our attention on the linear, quadratic and exponential loss functions. © 2015 IEEE.

AB - The optimal choice of design parameters has a huge impact on a control chart's performance. The economic-statistical design balances the economic and statistical performance of a chart, by selecting design parameters which minimize the cost subjected to statistical constraints. To compute the quality loss as a result of deviations from the target value, quality loss functions are often used. However, practitioners may incorrectly choose the wrong type of loss function to describe the quality loss. This paper studies the effects when the type of loss function is misspecified. This study is done on the synthetic X chart. We focus our attention on the linear, quadratic and exponential loss functions. © 2015 IEEE.

KW - economic-statistical design

KW - misspecification

KW - quality loss function

KW - synthetic chart

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DO - 10.1109/I4CT.2015.7219541

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BT - 2015 International Conference on Computer, Communications, and Control Technology

PB - IEEE

T2 - 2015 International Conference on Computer, Communications, and Control Technology

Y2 - 21 April 2015 through 23 April 2015

ER -

Effects of misspecification of the loss function on the economic-statistical design of the synthetic X̄ chart

Abstract

Conference

Keywords

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