
What is the efficiency of your reliability estimators and failure forecasts? Compare naïve forecasts: guess, AFR, MTBF, or times series extrapolations such as ARIMA, GMDH, and AI, vs. forecasts based on reliability estimators. With grouped lifetime data, the Kaplan-Meier estimator is statistically efficient, under a condition often ignored! With lifetime data you could use maximum likelihood estimators like Weibull or Kaplan-Meier from (a sample of?) grouped lifetimes. Without lifetime data you could estimate reliability from population ships and returns counts from data required by GAAP! This article compares efficiency and cost of forecasts based on alternative data and estimators.
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