Bayesian Statistical Analysis of Lifetime Performance Index of Exponential Product Under Precautionary Loss Function

Abstract

The purpose of this paper is to study the Bayesian estimation of life performance index when product’s life obeys exponential distribution based on complete samples. The Bayesian estimator of the life performance index is obtained when the prior distribution of the unknown parameter is the Gama prior distribution and the loss function used in this paper is the precautionary loss function. Furthermore, a new Bayesian testing procedure is developed using the obtained Bayesian estimator. Finally, a practical example is used to illustrate the effectiveness and feasibility of the results.