Three-stage sequential procedure for estimation of the mean of a two-parameter exponential distribution under bounded risk per unit cost constraint

The primary aim of this study is to propose a three-stage sequential sampling procedure for estimating the mean of a two-parameter exponential distribution under a bounded risk per unit cost constraint. The mean parameter θ of a two-parameter exponential distribution, is defined as α+β where α and β are the location and scale parameters, respectively. The constraint here is in such a way that the risk per unit cost is bounded below from a preassigned value ω. The expressions for the associated properties are derived according to the final sample size N. The simulation study is also conducted to verify the results of the crucial properties of the three-stage sequential procedure based on the risk per unit cost constraint and to compare the results of three-stage procedure with two-stage procedure due to Mahmoudi, Nemati, and Khalifeh. In the end, The performance of the suggested procedure is evaluated with the help of a real data set. Based on the obtained results, we conclude that the proposed three-stage procedure performs better and precisely.