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Explicit Formula for Average Run Length of Double Moving Control Chart for INAR(1) Processes

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17 August 2016

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18 August 2016

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Abstract
Count data are used in many fields of practice, especially Poisson distribution as a popular choice for the marginal process distribution. If these counts exhibit serial dependence, a popular approach is to use a Poisson INAR(1) model to describe the autocorrelation structure of process. In this paper, the explicit formulas are proposed to evaluate performance characteristics of Double Moving Average control chart (DMA) for Integer valued autoregressive of serial dependence Poisson process. The characteristics of the control chart are frequently measured as Average Run Length (ARL) which means that the average of observations are taken before a system is signaled to be out-of-control. These proposed explicit formulas of ARL are simple and easy to implement for practitioner. The numerical results show that the DMA chart performs better than others when the magnitudes of shift are moderate and large.
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Subject: Computer Science and Mathematics  -   Applied Mathematics
Copyright: This open access article is published under a Creative Commons CC BY 4.0 license, which permit the free download, distribution, and reuse, provided that the author and preprint are cited in any reuse.
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