7.3.4. Assuming the observations are failure times, are the failure rates (or Mean Times To Failure) the same?

7. Product and Process Comparisons
7.3. Comparisons based on data from two processes

7.3.4. Assuming the observations are failure times, are the failure rates (or Mean Times To Failure) the same?

Comparing two exponential distributions is to compare the means or hazard rates

The comparison of two (or more) life distributions is a common objective when performing statistical analyses of lifetime data. Here, we look at the one-parameter exponential distribution case.

In this case, comparing two exponential distributions is equivalent to comparing their means (or their reciprocal means, known as their hazard rates).

Type II Censored data

Definition: Type II censored data occur when a life test is terminated exactly when a pre-specified number of failures have occurred. The remaining units have not yet failed. If n units were on test, and the pre-specified number of failures is r (where r is less than or equal to n), then the test end at t_r = the time of the r-th failure.

Suppose we have Type II censored data from 2 exponential distributions with means q₁ and q₂. We have two samples from these distributions, of sizes n₁ on test with r₁ failures and n₂ on test with r₂ failures, respectively. The observations are time to failure and are therefore ordered by time.

Tests of equality of q₁ and q₂ can be performed using tables of the F distribution or computer programs.

Confidence intervals for q₁/ q₂, which is the ratio of the means and the hazard rates for the two distributions, are readily obtained.

Letting

has an F distribution with (2r₁, 2r₂) degrees of freedom. Tests of equality of q₁ and q₂ can be performed using tables of the F distribution or computer programs. Confidence intervals for q₁/ q_2&, which is the ratio of the means or the hazard rates for the two distributions are also readily obtained.

A numerical application will illustrate the concepts outlined above.

Two samples of size 10 from exponential distributions were put on life test. The first sample was censored after 7 failures and the second sample was censored after 5 failures. The times to failure were:

Sample 1: 125 189 210 356 468 550 610

Sample 2: 170 234 280 350 467

So r₁ = 7, r₂ = 5 and t_1,(r1)= 610, t_2,(r2)=467.

Then T₁ = 4338 and T₂ = 3836.

The estimator for q₁ is 4338 / 7 = 619.74 and the estimator for q₂ is 3836 / 5 = 767.20.

The ratio of the estimators = U = 619.74 / 767.20 = .808.

If the means are the same, the ratio of the estimators, U, follows an F distribution with 2r₁, 2r₂degrees of freedom. The associated p-value for U = .808 for an F_14,10 distribution is .652. Based on this p-value, we find no evidence to reject the null hypothesis (that the true but unknown ratio = 1).

We can also put a 95% confidence interval around the ratio of the two means. Since the .025 and .975 quantiles of F_(14,10) are 0.3178 and 3.1550, respectively, we have

Pr(U/3.5504 < q₁/ q₂ < U/.3178) = .95

and (.228, 2.542) is a 95% confidence interval for the ratio of the unknown means. The value of 1 is within this range, which is another way of showing that we cannot reject the null hypothesis at the 95% significance level.