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Optimal selection of the t best of a sequence with sampling cost
Author(s) -
Yang HwaMing
Publication year - 1987
Publication title -
naval research logistics (nrl)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.665
H-Index - 68
eISSN - 1520-6750
pISSN - 0894-069X
DOI - 10.1002/1520-6750(198704)34:2<281::aid-nav3220340211>3.0.co;2-8
Subject(s) - independent and identically distributed random variables , limit (mathematics) , sequence (biology) , sampling (signal processing) , mathematics , selection (genetic algorithm) , expected value , mathematical optimization , carry (investment) , sample (material) , optimal decision , value (mathematics) , statistics , random variable , computer science , decision tree , artificial intelligence , mathematical analysis , chemistry , filter (signal processing) , finance , chromatography , biology , economics , computer vision , genetics
This article deals with the problem of selecting the t best of n independent and identically distributed random variables which are observed sequentially with sampling cost c per unit. Assume that a decision for acceptance or rejection must be made after each sampling and that the reward for each observation with value x is given by px ‐ c , where p is 1 if the observation is accepted, or 0 otherwise. The optimal decision procedure (strategy) for maximizing the total expected reward is obtained. The critical numbers which are necessary to carry out the optimal decision procedure is presented by two recursive equations. The limit values of the critical numbers and the expected sample size are also studied.