QUADRATIC LOSS FUNCTION

 Hi folks,
Welcome to my blog once again. When a critical quality characteristic deviates from the target value, it causes a loss. Quality simply means no variability or little variation from target performance. Quadratic loss function is a simple and meaningful function for approximating the quality loss in most situations. The three most common variations of the quadratic loss function are:
• Nominal the best type: L(y) = (A/δ2)(y-m)2
• Smaller the best type: L(y) = (A/δ2)y2
• Larger the best type: L(y) = (Aδ2)(1/y2)
Where L is the functional limit, A is the loss incurred at the functional limits, Y is the quality characteristic and δ is the deviation. Thank you.