Control Charts for the Generalized Variance Based on Its Predictive Distribution

Abstract

This article develops a control chart for the generalized variance. A Bayesian approach is used to incorporate parameter uncertainty. Our approach has two stages, (i) construction of the control chart where we use a predictive distribution based on a Bayesian approach to derive the rejection region, and (ii) evaluation of the control chart where we use a sampling theory approach to examine the performance of the control chart under various hypothetical specifications for the data generation model.