Sequential Data - Lloyd-Lipow Model

This example appears in the Reliability Growth and Repairable System Analysis Reference book.

Use MLE to find the Lloyd-Lipow model that represents the data in the following table, and plot it along with the 95% 2-sided confidence bounds. Does the model follow the data?

Solution

The two figures below demonstrate the solution. As can be seen from the Reliability vs. Time plot with 95% 2-sided confidence bounds, the model does not seem to follow the data. You may want to consider another model for this data set.