A sequential sampling plan for exponential distribution

Yeh LAM, Boris CHOY, Leung Ho Philip YU

Research output: Contribution to journalArticlespeer-review

2 Citations (Scopus)


In this article, a sequential variable sampling plan is studied. Suppose that the quality of an item in a batch is measured by a random variable with exponential distribution; its parameter is unknown having a gamma prior distribution. Then by using Bayesian approach and considering a Markov decision process, the optimality equations for the minimum total expected cost are formulated. We show that an optimal decision rule will have a control limit structure and monotonicity. A backward induction method is suggested that is a finite algorithm for the numerical solution of the sequential sampling plan. Copyright © 2016 Taylor & Francis Group, LLC.
Original languageEnglish
Pages (from-to)331-346
JournalSequential Analysis
Issue number3
Early online dateSept 2016
Publication statusPublished - 2016


Lam, Y., Choy, B., & Yu, P. (2016). A sequential sampling plan for exponential distribution. Sequential Analysis, 35(3), 331-346. doi: 10.1080/07474946.2016.1165523


  • Backward induction
  • Markov decision process
  • Optimality equation
  • Sequential sampling plan


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