We propose an alternative bivariate zero-inflated negative binomial (BZINB) regression model based on a copula. The empirical result shows that the proposed model performs better than the existing BZINB models in terms of the maximum log-likelihood and the AIC.

In product and process optimization, it is common to have multiple responses to be optimized. This is called multi-response optimization (MRO). When optimizing multiple responses, it is important to consider variability as well as mean of the multiple responses. The authors call this problem as...

In multiresponse surface optimization (MRSO), responses are often in conflict. To obtain a satisfactory compromise, the preference information of a decision maker (DM) on the tradeoffs among the responses should be incorporated into the problem. In most existing work, the DM expresses a...

A product-service system (PSS) is a novel type of business model that integrates products and services in a single system. It provides a strategic alternative to product-oriented economic growth and price-based competition in the global market. This research proposes a methodology to support the...

This paper derives several Lagrange Multiplier tests for the unbalanced nested error component model. Economic data with a natural nested grouping include firms grouped by industry; or students grouped by schools. The LM tests derived include the joint test for both effects as well as the test...

This paper derives several Lagrange Multiplier tests for the unbalanced nested error component model with serially correlated remainder disturbances. The problems of overtesting and undertesting for serial correlation and zero random group and nested subgroup effects are considered. The joint...

This paper considers a panel data regression model with heteroskedastic as well as serially correlated disturbances, and derives a joint LM test for homoskedasticity and no first order serial correlation. The restricted model is the standard random individual error component model. It also...