BAYESIAN-APPROACH TO LIFE TESTING AND RELIABILITY ESTIMATION USING ASYMMETRIC LOSS FUNCTION

In this paper we derive Bayes estimators of the mean lifetime and the reliability function in the exponential life testing model. The loss functions used are asymmetric to reflect that, in most situations of interest, overestimating is more harmful than underestimating. A number of prior distributions have been considered and Bayesian estimates have been compared with corresponding estimates with squared error loss function.