A two-stage experimental design procedure under dispersion effects

Abstract

Under heterogeneous variance, conventional optimal response surface experimental designs for estimating location models are no longer optimal. To address this deficiency. D and Q criteria appropriate under heterogeneous variance are developed. These criteria are then applied to demonstrate the improved efficiency of a proposed two-stage experimental design procedure. In the proposed procedure the first stage estimates the heterogeneous variance structure and the second stage augments the first stage to produce a total design that is Q or D-optimal for the estimated variance structure. The Q and 0 criteria not only direct the total design, but also suggest optimal designs for estimating dispersion effects in the first stage. The efficiency of the proposed two-stage procedure is further enhanced if certain mild assumptions concerning variance structure are valid. These assumptions are formulated as a prior distribution and effectively stabilize the variance estimation in the first stage through a Bayes estimator.