An application of Pitman‐efficiency to acceptance sampling procedures*

J. Wouters and M. C. A. van Zuylen

Statistica Neerlandica, 1972, vol. 26, issue 2, 69-83

Abstract: As an exercise the concept of Pitman‐efficiency has been applied to the decision problem whether to use acceptance sampling “by attributes” or “by variables”. The Pitman‐efficiency has been calculated in the two cases that the variance of the underlying normal distribution is known and that it is unknown. Rather surprisingly the difference between these two cases proves to be considerable, even asymptotically. The asymptotic result is compared with the exact values of the relative efficiency in the case that s̀ is unknown. The asymptotic approximation appears to be rather good. The results derived also help to determine a suitable choice of the null hypothesis in order to increase the Pitman‐efficiency.

Date: 1972
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