Nonparametric Age Replacement: Bootstrap Confidence Intervals for the Optimal Cost

Christian Léger and Robert Cléroux
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Christian Léger: University of Montreal, Montreal, Quebec, Canada
Robert Cléroux: University of Montreal, Montreal, Quebec, Canada

Operations Research, 1992, vol. 40, issue 6, 1062-1073

Abstract: Bootstrap confidence intervals for the actual cost of using a given nonparametric estimate of the optimal age replacement strategy are shown to have the claimed coverage probability. A numerical algorithm is given to obtain these confidence intervals in practice. The small sample behavior of these confidence intervals is illustrated by simulations. Finally, comparisons are made with the confidence interval obtained from asymptotic normal theory. We show that the bootstrap confidence interval is the one to use in age replacement problems.

Keywords: reliability; replacement/renewal: confidence interval for the optimal cost in age replacement; statistics; estimation: confidence interval for the optimal cost in age replacement (search for similar items in EconPapers)
Date: 1992
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