The Best Estimate of Reliability in the Exponential Case

Published Online:https://doi.org/10.1287/opre.11.1.57

The commonly used estimate of reliability in the exponential case, i.e., the maximum likelihood estimate, is shown to exert a strong negative effect on reliability calculations because of its bias. A minimum variance unbiased estimate is then derived using a theorem of Blackwell and Rao.

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