Properties of distributions with increasing failure rate
This paper solves the search for interior solutions to optimization problems using stochastic variables. This is done by way of some new properties of distribution functions with increasing failure rates as characterized in Barlow and Proschan (1965). Building upon Lariviere (2006), we show that an objective function of the type R(x) = F(x)+xF(x), where F(x) = 1-F(x), can also admit one interior maximal solution when the distribution function F has an increasing failure rate (IFR).
|Date of creation:||30 Oct 2009|
|Date of revision:||02 Nov 2009|
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- Martin A. Lariviere & Evan L. Porteus, 2001. "Selling to the Newsvendor: An Analysis of Price-Only Contracts," Manufacturing & Service Operations Management, INFORMS, vol. 3(4), pages 293-305, May.
- Martin A. Lariviere, 2006. "A Note on Probability Distributions with Increasing Generalized Failure Rates," Operations Research, INFORMS, vol. 54(3), pages 602-604, June.
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