Figure 3.1 shows censoring events occuring at the end of years 1, 2, and 3
The nonparametric estimates for $F(t_{i})$ computed using the simple binomial method assume that the number of items at risk does not change after each inspection
The binomial method treats each inspection as a separate analysis with singly censored data
Analysis 1 $\rightarrow n=100, t_{0}=0, t_{c}=Year 1 \rightarrow$ 1 failure observed
Analysis 2 $\rightarrow n=100, t_{0}=0, t_{c}=Year 2 \rightarrow$ 3 failures observed
Analysis 3 $\rightarrow n=100, t_{0}=0, t_{c}=Year 3 \rightarrow$ 5 failures observed
The nonparametric estimate of $F(t_{i})$ based on the binomial distribution is
$$\hat{F}(t_{i})=\frac{#\text{ of failures up to time }t_i}{n}=\frac{\sum_{j=1}^{i}d_j}{n}$$ - where
+ The sample size $n=100$ + The number of failures $d_{j}=1\;\text{(Year 1)},\;3\;\text{(Year 2)},\;5\;\text{(Year 3)}$
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