Reference : Nonparametric control charts: economic statistical design
 Document type : E-prints/Working papers : First made available on ORBi Discipline(s) : Business & economic sciences : Quantitative methods in economics & management To cite this reference: http://hdl.handle.net/2268/194207
 Title : Nonparametric control charts: economic statistical design Language : English Author, co-author : Marcos Alvarez, Alejandro [Université de Liège > Dép. d'électric., électron. et informat. (Inst.Montefiore) > Systèmes et modélisation >] Heuchenne, Cédric [Université de Liège > HEC-Ecole de gestion : UER > Statistique appliquée à la gestion et à l'économie >] Faraz, Alireza [Université de Liège > HEC-Ecole de gestion : UER > Statistique appliquée à la gestion et à l'économie >] Publication date : 2016 Peer reviewed : No Keywords : [en] Control charts ; Economic statistical design ; Nonparametric statistics ; Quality control ; Sign test ; Wilcoxon signed-rank test Abstract : [en] This paper studies economic statistical designs (ESD) for nonparametric control charts based on the sign and Wilcoxon tests. The main advantage of the procedures is that, except for the tested location parameter, they do not use either any parametric distribution for the quality characteristic or any information about the possible involved parameters, neither in the in-control nor in the out-of-control state. This is made possible by minimizing a cost function specified independently of these quantities. Unlike the ESD for the $\overline{x}$ chart, the resulting charts designs are robust to changes of the distributions of the observations (in control or out of control), provide reliable statistical guarantees when the $\overline{x}$ chart ESD does not and stay competitive even when the strong assumptions of the $\overline{x}$ chart ESD are fully satisfied. These new techniques can therefore be applied to a definitely wider class of problems and their designs may stay constant over time without losing performance. Permalink : http://hdl.handle.net/2268/194207

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