This paper considers a "single bottleneck system": a multistage production system where all setups except one are zero. The stage with nonzero setup is defined to be the bottleneck; it may be thought of as the critical resource whose throughput largely determines the throughput of the entire...

Fiducial quantities are proposed to construct approximate tolerance limits and intervals for functions of some discrete random variables. Using established fiducial quantities for binomial proportions, Poisson rates, and negative binomial proportions, an approach is demonstrated to handle...

Uncertainty about the riskiness of new financial products was an important factor behind the U.S. credit crisis. We show that a boom-bust cycle in debt, asset prices and consumption characterizes the equilibrium dynamics of a model with a collateral constraint in which agents learn "by...

The theme of this paper is improved planning of binomial sequential probability ratio tests in the context of comparison of two objects as to their time between failures or to failure, assumed to be exponentially distributed. The authors' earlier works established that the probabilities of I-...

Data envelopment analysis (DEA) is a deterministic econometric model for calculating efficiency by using data from an observed set of decision-making units (DMUs). We propose a method for calculating the distribution of efficiency scores. Our framework relies on estimating data from an...

The Poisson regression model remains an important tool in the econometric analysis of count data. In a pioneering contribution to the econometric analysis of such models, Lung-Fei Lee presented a specification test for a Poisson model against a broad class of discrete distributions sometimes...

Purpose – The purpose of this paper is to use Bayesian probability theory to analyze the software reliability model with multiple types of faults. The probability that all faults are detected and corrected after a series of independent software tests and correction cycles is presented. This in...