IDEAS home Printed from https://ideas.repec.org/a/eee/reensy/v92y2007i5p619-627.html
   My bibliography  Save this article

Estimating rate of occurrence of rare events with empirical bayes: A railway application

Author

Listed:
  • Quigley, John
  • Bedford, Tim
  • Walls, Lesley

Abstract

Classical approaches to estimating the rate of occurrence of events perform poorly when data are few. Maximum likelihood estimators result in overly optimistic point estimates of zero for situations where there have been no events. Alternative empirical-based approaches have been proposed based on median estimators or non-informative prior distributions. While these alternatives offer an improvement over point estimates of zero, they can be overly conservative. Empirical Bayes procedures offer an unbiased approach through pooling data across different hazards to support stronger statistical inference.

Suggested Citation

  • Quigley, John & Bedford, Tim & Walls, Lesley, 2007. "Estimating rate of occurrence of rare events with empirical bayes: A railway application," Reliability Engineering and System Safety, Elsevier, vol. 92(5), pages 619-627.
  • Handle: RePEc:eee:reensy:v:92:y:2007:i:5:p:619-627
    DOI: 10.1016/j.ress.2006.02.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0951832006000676
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ress.2006.02.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Vaurio, Jussi K. & Jänkälä, Kalle E., 2006. "Evaluation and comparison of estimation methods for failure rates and probabilities," Reliability Engineering and System Safety, Elsevier, vol. 91(2), pages 209-221.
    2. Vaurio, Jussi K., 2005. "Uncertainties and quantification of common cause failure rates and probabilities for system analyses," Reliability Engineering and System Safety, Elsevier, vol. 90(2), pages 186-195.
    3. Bühlmann, Hans, 1967. "Experience Rating and Credibility," ASTIN Bulletin, Cambridge University Press, vol. 4(3), pages 199-207, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Keisuke Himoto, 2020. "Hierarchical Bayesian Modeling of Post‐Earthquake Ignition Probabilities Considering Inter‐Earthquake Heterogeneity," Risk Analysis, John Wiley & Sons, vol. 40(6), pages 1124-1138, June.
    2. Nima Khakzad & Sina Khakzad & Faisal Khan, 2014. "Probabilistic risk assessment of major accidents: application to offshore blowouts in the Gulf of Mexico," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 74(3), pages 1759-1771, December.
    3. Leonidas Sakalauskas, 2010. "On the Empirical Bayesian Approach for the Poisson-Gaussian Model," Methodology and Computing in Applied Probability, Springer, vol. 12(2), pages 247-259, June.
    4. Hongyang Yu & Faisal Khan & Brian Veitch, 2017. "A Flexible Hierarchical Bayesian Modeling Technique for Risk Analysis of Major Accidents," Risk Analysis, John Wiley & Sons, vol. 37(9), pages 1668-1682, September.
    5. Khakzad, Nima & Khan, Faisal & Paltrinieri, Nicola, 2014. "On the application of near accident data to risk analysis of major accidents," Reliability Engineering and System Safety, Elsevier, vol. 126(C), pages 116-125.
    6. Xie, Shuyi & Huang, Zimeng & Wu, Gang & Luo, Jinheng & Li, Lifeng & Ma, Weifeng & Wang, Bohong, 2024. "Combining precursor and Cloud Leaky noisy-OR logic gate Bayesian network for dynamic probability analysis of major accidents in the oil depots," Reliability Engineering and System Safety, Elsevier, vol. 241(C).
    7. Quigley, John & Walls, Lesley, 2011. "Mixing Bayes and empirical Bayes inference to anticipate the realization of engineering concerns about variant system designs," Reliability Engineering and System Safety, Elsevier, vol. 96(8), pages 933-941.
    8. Maalouf, Maher & Trafalis, Theodore B., 2011. "Robust weighted kernel logistic regression in imbalanced and rare events data," Computational Statistics & Data Analysis, Elsevier, vol. 55(1), pages 168-183, January.
    9. John Quigley & Kevin J. Wilson & Lesley Walls & Tim Bedford, 2013. "A Bayes Linear Bayes Method for Estimation of Correlated Event Rates," Risk Analysis, John Wiley & Sons, vol. 33(12), pages 2209-2224, December.
    10. Nima Khakzad & Faisal Khan & Paul Amyotte, 2015. "Major Accidents (Gray Swans) Likelihood Modeling Using Accident Precursors and Approximate Reasoning," Risk Analysis, John Wiley & Sons, vol. 35(7), pages 1336-1347, July.
    11. Norrington, Lisa & Quigley, John & Russell, Ashley & Van der Meer, Robert, 2008. "Modelling the reliability of search and rescue operations with Bayesian Belief Networks," Reliability Engineering and System Safety, Elsevier, vol. 93(7), pages 940-949.
    12. Quigley, John & Walls, Lesley & Demirel, Güven & MacCarthy, Bart L. & Parsa, Mahdi, 2018. "Supplier quality improvement: The value of information under uncertainty," European Journal of Operational Research, Elsevier, vol. 264(3), pages 932-947.
    13. Quigley, John & Hardman, Gavin & Bedford, Tim & Walls, Lesley, 2011. "Merging expert and empirical data for rare event frequency estimation: Pool homogenisation for empirical Bayes models," Reliability Engineering and System Safety, Elsevier, vol. 96(6), pages 687-695.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Quigley, John & Walls, Lesley, 2011. "Mixing Bayes and empirical Bayes inference to anticipate the realization of engineering concerns about variant system designs," Reliability Engineering and System Safety, Elsevier, vol. 96(8), pages 933-941.
    2. Pinquet, Jean, 1998. "Designing Optimal Bonus-Malus Systems from Different Types of Claims," ASTIN Bulletin, Cambridge University Press, vol. 28(2), pages 205-220, November.
    3. Min Zhang & Zhijian Zhang & Ali Mosleh & Sijuan Chen, 2017. "Common cause failure model updating for risk monitoring in nuclear power plants based on alpha factor model," Journal of Risk and Reliability, , vol. 231(3), pages 209-220, June.
    4. Gianpaolo Di Bona & Antonio Forcina & Domenico Falcone & Luca Silvestri, 2020. "Critical Risks Method (CRM): A New Safety Allocation Approach for a Critical Infrastructure," Sustainability, MDPI, vol. 12(12), pages 1-19, June.
    5. Abou, Seraphin C., 2010. "Performance assessment of multi-state systems with critical failure modes: Application to the flotation metallic arsenic circuit," Reliability Engineering and System Safety, Elsevier, vol. 95(6), pages 614-622.
    6. Hoepfer, V.M. & Saleh, J.H. & Marais, K.B., 2009. "On the value of redundancy subject to common-cause failures: Toward the resolution of an on-going debate," Reliability Engineering and System Safety, Elsevier, vol. 94(12), pages 1904-1916.
    7. Quigley, John & Hardman, Gavin & Bedford, Tim & Walls, Lesley, 2011. "Merging expert and empirical data for rare event frequency estimation: Pool homogenisation for empirical Bayes models," Reliability Engineering and System Safety, Elsevier, vol. 96(6), pages 687-695.
    8. Chen, Qian & Zuo, Lili & Wu, Changchun & Li, Yun & Hua, Kaixun & Mehrtash, Mahdi & Cao, Yankai, 2022. "Optimization of compressor standby schemes for gas transmission pipeline systems based on gas delivery reliability," Reliability Engineering and System Safety, Elsevier, vol. 221(C).
    9. J. Pinquet & M. Guillén & C. Bolancé, 2000. "Long-range contagion in automobile insurance data : estimation and implications for experience rating," THEMA Working Papers 2000-43, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    10. Cui, Lirong & Li, Haijun, 2007. "Analytical method for reliability and MTTF assessment of coherent systems with dependent components," Reliability Engineering and System Safety, Elsevier, vol. 92(3), pages 300-307.
    11. KanÄ ev, DuÅ¡ko & ÄŒepin, Marko, 2012. "A new method for explicit modelling of single failure event within different common cause failure groups," Reliability Engineering and System Safety, Elsevier, vol. 103(C), pages 84-93.
    12. Veljanovski, N. & ÄŒepin, M., 2024. "Event tree-based risk and financial assessment for power plants," Reliability Engineering and System Safety, Elsevier, vol. 247(C).
    13. Diaz, Juan Esteban & Handl, Julia & Xu, Dong-Ling, 2018. "Integrating meta-heuristics, simulation and exact techniques for production planning of a failure-prone manufacturing system," European Journal of Operational Research, Elsevier, vol. 266(3), pages 976-989.
    14. L Xing & P Boddu & Y Sun & W Wang, 2010. "Reliability analysis of static and dynamic fault-tolerant systems subject to probabilistic common-cause failures," Journal of Risk and Reliability, , vol. 224(1), pages 43-53, March.
    15. Strigini, Lorenzo & Wright, David, 2014. "Bounds on survival probability given mean probability of failure per demand; and the paradoxical advantages of uncertainty," Reliability Engineering and System Safety, Elsevier, vol. 128(C), pages 66-83.
    16. Levitin, Gregory & Xing, Liudong & Amari, Suprasad V. & Dai, Yuanshun, 2013. "Reliability of non-repairable phased-mission systems with propagated failures," Reliability Engineering and System Safety, Elsevier, vol. 119(C), pages 218-228.
    17. Zhou, Taotao & Droguett, Enrique López & Modarres, Mohammad, 2020. "A common cause failure model for components under age-related degradation," Reliability Engineering and System Safety, Elsevier, vol. 195(C).
    18. Xing, Liudong & Meshkat, Leila & Donohue, Susan K., 2007. "Reliability analysis of hierarchical computer-based systems subject to common-cause failures," Reliability Engineering and System Safety, Elsevier, vol. 92(3), pages 351-359.
    19. Taghipour, Sharareh & Banjevic, Dragan & Jardine, Andrew K.S., 2010. "Periodic inspection optimization model for a complex repairable system," Reliability Engineering and System Safety, Elsevier, vol. 95(9), pages 944-952.
    20. Hu, Shenping & Fang, Quangen & Xia, Haibo & Xi, Yongtao, 2007. "Formal safety assessment based on relative risks model in ship navigation," Reliability Engineering and System Safety, Elsevier, vol. 92(3), pages 369-377.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reensy:v:92:y:2007:i:5:p:619-627. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/reliability-engineering-and-system-safety .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.