# Actuarial estimation method for Nonparametric Distribution Analysis (Right Censoring)

## Characteristics of variable – actuarial estimation method

The median is a measure of the center of the distribution.

Nonparametric estimates do not depend on any particular distribution. Therefore, these estimates are useful when no distribution adequately fits the data.

### Interpretation

The characteristics of the variable are calculated for the engine windings tested at 80° C.

The median (56.1905) is a resistant statistic because outliers and the tails in a skewed distribution do not significantly affect its values.

## Additional time from Time T until 50% of running units fail – actuarial estimation method

Use the additional time table to determine how much additional time, from a fixed time, passes before a certain percentage of the currently surviving products will fail. For each "Time T", Minitab estimates the additional time that must pass until one-half of the currently surviving products fail.

### Interpretation

For the engine windings at 80° C, 84% of the windings survive until 40 hours. After an estimated 20 more hours, an additional 42% ((0.84 x 0.5) x 100) of the windings that are still running at 40 hours are expected to fail.

## Conditional probability of failure – actuarial estimation method

The conditional probability of failure indicates the probability that a product that has survived until the beginning of a particular interval will fail within the interval.

### Interpretation

At 80° C, an engine winding that survived until 40 hours has a probability of 0.500000 (or a 50% chance) of failing in the interval of 40 to 60 hours.

## Survival probabilities – actuarial estimation method

The survival probabilities indicate the probability that the product survives until a particular time. Use these values to determine whether your product meets reliability requirements or to compare the reliability of two or more designs of a product.

### Interpretation

At 80° C, 0.84, or 84%, of the engine windings survived at least 40 hours.

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