Strategies for Obtaining the Target Value By

Abstract: Traditionally a symmetric quadratic loss function is used in measuring the loss of quality of a product. In such a case the desired target value of a characteristic of the product is equal to the optimal value. In the paper the authors consider an asymmetric loss function in which the loss associated with a deviation from the optimal value depends on the direction. In such a situation, it is necessary to adjust the target value to achieve the minimum loss. The authors examine the relationship between the amount of the adjustment and other factors such as the underlying distribution, the unknown parameters, and the form of the loss function