Bayes stopping rules for reliability testing with the exponential distribution

These rules for terminating testing involve achieving specified levels of credibility in both: (1) the probability of the posterior estimate of the exponential scale-parameter, θ, after some, m, of the units have been tested, and (2) the mean of the probability of θ over the remaining units, when viewed pessimistically. Sample decision tables and a numerical example illustrate both the sequential and batch testing cases. Large savings in test times can be achieved whenever the first m units present strong evidence in favor of either hypothesis (H₀: θ=θ₀ vs. H₁ : θ=θ₁, θ₁<θ ₀)