TY  - JOUR
T1  - Three-Stage Procedure and Expected Opportunity Cost for Selecting a Good Simulated Design
AU - Baharum, Adam AU - H. Almomani, Mohammad AU - Abdul Rahman, Rosmanjawati 
JO  - Research Journal of Applied Sciences
VL  - 5
IS  - 6
SP  - 417
EP  - 423
PY  - 2010
DA  - 2001/08/19
SN  - 1815-932x
DO  - rjasci.2010.417.423
UR  - https://makhillpublications.co/view-article.php?doi=rjasci.2010.417.423
KW  - indifference zone
KW  -Opportunity cost
KW  -ranking and selection
KW  -ordinal optimization
KW  -subset selection
KW  -Malaysia
AB  - Three-stage procedure is used to select one of the best simulated designs with high probability. This procedure involves three stages that consists the ordinal optimization approach, subset selection approach and indifference-zone approach. Normally the three-stage procedure focuses on the probability of correct selection as a measure of selection quality. Another measure of selection quality is the expected opportunity cost of a potentially incorrect selection where the opportunity cost in the simulation selection problem is defined as the difference of unknown mean between the selected best design and the actual best design. In this study, we select a good simulated design using the three-stage procedure and utilizing the expected opportunity cost of a potentially incorrect selection. The results of the numerical example show that the procedure selects a good simulated design with high probability and minimum expected opportunity cost.
ER  -