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Economic screening procedures in logistic and normal models

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  • Sang Boo Kim
  • Do Sun Bai

Abstract

Economic screening procedures based on a continuous screening variable X in place of a dichotomous performance variable T are presented. Optimal critical values on the screening variable minimizing the expected cost are obtained for two models; it is assumed that X given T is normally distributed in normal model and P[T = 1|X] is a logistic function of X in the logistic model, and that costs are incurred by screening inspection and misclassification errors. Cases where some parameters are unknown are also considered.

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  • Sang Boo Kim & Do Sun Bai, 1990. "Economic screening procedures in logistic and normal models," Naval Research Logistics (NRL), John Wiley & Sons, vol. 37(6), pages 919-928, December.
    • Handle: RePEc:wly:navres:v:37:y:1990:i:6:p:919-928
    DOI: 10.1002/1520-6750(199012)37:63.0.CO;2-E
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    Cited by:

    1. R. J. Boys & K. D. Glazebrook & D. J. Laws, 1996. "A class of Bayes‐optimal two‐stage screens," Naval Research Logistics (NRL), John Wiley & Sons, vol. 43(8), pages 1109-1125, December.
    2. Do Sun Bai & Hyuck Moo Kwon & Min Koo Lee, 1995. "An economic two‐stage screening procedure with a prescribed outgoing quality in logistic and normal models," Naval Research Logistics (NRL), John Wiley & Sons, vol. 42(7), pages 1081-1097, October.

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