Identification and Extensions of Quasiconvex Quality Loss Functions

Abstract

This paper presents a set of related quasiconvex quality loss functions. Characteristics of quasiconvex functions that are desirable for modeling quality loss are noted. Three frequently used univariate quasiconvex quality loss functions are discussed. Bivariate and multivariate quasiconvex quality loss functions are developed. A set of necessary and sufficient conditions is established for the quasiconvexity of multivariate quality loss functions. An industrial product example is used to illustrate the development of a bivariate quadratic quality loss function.