Estimation of process performance index for the two-parameter exponential distribution with measurement error

Abstract

Measurement errors are inevitable in practice, but they are not considered in the existing process performance index. Therefore, we propose an estimation method of process performance index for the two-parameter exponential distribution with measurement errors to fill this gap. In this paper, the relationship between the unobservable actual value and measurement value is considered as full error model, and the maximum likelihood estimation method is considered to obtain the unknown parameters. In addition, we also use the Bootstrap method to construct confidence intervals of process performance index. The performance of the proposed estimation is investigated in terms of bias, mean square error (MSE) and average interval length. Simulation results show that the proposed estimator outperforms other estimators. Finally, an example of the mileage data of the military personnel carrier is given to illustrate the implementation of the proposed estimation method.