Adaptive charting schemes based on double sequential probability ratio tests

Authors

  • Yan Li,

    1. School of Finance and Statistics, East China Normal University, 500 Dongchuan Road, Shanghai, People's Republic of China
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  • Xiaolong Pu,

    Corresponding author
    1. School of Finance and Statistics, East China Normal University, 500 Dongchuan Road, Shanghai, People's Republic of China
    • School of Finance and Statistics, East China Normal University, 500 Dongchuan Road, Shanghai 200241, People's Republic of China
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  • Fugee Tsung

    1. Department of Industrial Engineering and Logistics Management, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong
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Abstract

Sequential probability ratio test (SPRT) control charts are shown to be able to detect most shifts in the mean or proportion substantially faster than conventional charts such as CUSUM charts. However, they are limited in applications because of the absence of the upper bound on the sample size and possibly large sample numbers during implementation. The double SPRT (2-SPRT) control chart, which applies a 2-SPRT at each sampling point, is proposed in this paper to solve some of the limitations of SPRT charts. Approximate performance measures of the 2-SPRT control chart are obtained by the backward method with the Gaussian quadrature in a computer program. On the basis of two industrial examples and simulation comparisons, we conclude that the 2-SPRT chart is competitive in that it is more sensitive and economical for small shifts and has advantages in administration because of fixed sampling points and a proper upper bound on the sample size. Copyright © 2008 John Wiley & Sons, Ltd.

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