The use of linear regression to estimate replacement ratio - An example from paper applications

Abstract

Replacement ratio is a concept that attempts to answer the following question in a quantitative manner: How good is one product compared to the other for achieving a given level of performance? Even though this concept is not new and has been used widely in various disciplines, to date, there is no literature that discusses it fully. In this article, we address this void. As such, this work has several objectives: First, to show that replacement ratio is a useful concept if the aim is to compare two products by focusing on performance. Second, to demonstrate how to estimate replacement ratio using regression equation. Third, to interpret the meaning of the margin of error associated with the replacement ratio estimate. And finally, to discuss the limitations of the replacement ratio procedure. To achieve the above objectives, we used retention and drainage devices.