Value of Information for Comparing Dependent Repairable Assemblies and Systems
This article presents an approach for comparing alternative repairable systems and calculating the value of information obtained by testing a specified number of such systems. More specifically, an approach is presented to determine the value of information that comes from field testing a specified number of systems in order to appropriately estimate the reliability metric associated with each of the respective repairable systems. Here the reliability of a repairable system will be measured by its failure rate. In support of the decision-making effort, the failure rate is translated into an expected utility based on a utility curve that represents the risk tolerance of the decision-maker. The algorithm calculates the change of the expected value of the decision with the sample size. The change in the value of the decision represents the value of information obtained from testing.