Metrika, Vol.47, No. 1 (1998)
Posted: 12 Feb 1998
When screening a production process for nonconforming items the objective is to improve the average outgoing quality level. Due to measurement errors specification limits cannot be checked directly and hence test limits are required, which meet some given requirement, here given by a prescribed bound on the consumer loss. Classical test limits are based on normality, both for the product characteristic and for the measurement error. In practice, often nonnormality occurs for the product characteristic as well as for the measurement error. Recently, nonnormality of the product characteristic has been investigated. In this paper attention is focussed on the measurement error. Firstly, it is shown that nonnormality can lead to serious failure of the test limit. New test limits are therefore derived, which have the desired robustness property: a small loss under normality and a large gain in case of nonnormality when compared to the normal test limit. Monte Carlo results illustrate that the asymptotic theory is in agreement with moderate sample behaviour.
JEL Classification: C10, C15
Suggested Citation: Suggested Citation
Albers, Willem and Kallenberg, Wilbert C.M. and Otten, Gertjan D., Accurate Test Limits Under Nonnormal Measurement Error. Metrika, Vol.47, No. 1 (1998). Available at SSRN: https://ssrn.com/abstract=58083