
i
i
“K23166” — 2015/1/28 — 9:35 — page 165 — #191
i
i
i
i
i
i
10.3. FURTHER RESOURCES 165
10.2.4 Censored survival
A similar problem demonstrates the ways that empirical simulations can complement ana-
lytic (closed-form) solutions. Consider an example where a recording device that measures
remote activity is placed in a remote location. The time, T , to failure of the remote device
has an exponential distribution with mean of 3 years. Since the location is so remote, the
device will not be monitored during its first two years of service. As a result, the time to
discovery of its failure is X = max(T, 2). The problem here is to determine the expected
value