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The technique was consequently compared against the conventional LSSVR algorithm which is based on the quadratic loss function.
Optimal designs are studied in terms of generalized least squares estimation and the average expected quadratic loss.
The argument can be illustrated in a model where the ultimate objective is minimizing a quadratic loss function in output and inflation but a credible rule is needed in order to prevent an inflationary bias that arises under discretion.
In this field, the most common approaches solve this problem based on the minimization of a quadratic loss function or the maximization of a probability distribution.
These properties include individual and overall measures (average run length, standard deviation run length, extra quadratic loss, relative average run length, and performance comparison index) for comparative analysis.
The ABS SPRT chart is designed by an optimization algorithm, aiming at minimizing the Average Extra Quadratic Loss (AEQL) over the process shift domain.
Taguchi's Quadratic loss function was employed in this research to construct the quality losses for economic-statistical design of control charts with multiple assignable causes.
The new contribution of this paper is the development of an algorithm for the optimal design of the SPRT chart based on the Average Extra Quadratic Loss (AEQL).
Our findings suggest that all three variants of the test have good finite sample properties when quadratic loss is specified, even for samples as small as 600 observations.
Additionally, the superiority test indicates statistically that the Switching forecast model is more effective than alternative models based on quadratic loss function.
The example shows that the social loss from the Taguchi's Quadratic loss function is the most important cost compared with the original cost items.
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