Frequentist andBayesiantolerance intervals for setting specification limits for left‐censored gamma distributed drug quality attributes

Abstract Tolerance intervals from quality attribute measurements are used to establish specification limits for drug products. Some attribute measurements may be below the reporting limits, that is, left‐censored data. When data has a long, right‐skew tail, a gamma distribution may be applicable. This paper compares maximum likelihood estimation (MLE) and Bayesian methods to estimate shape and scale parameters of censored gamma distributions and to calculate tolerance intervals under varying sample sizes and extents of censoring. The noninformative reference prior and the maximal data information prior (MDIP) are used to compare the impact of prior choice. Metrics used are bias and root mean square error for the parameter estimation and average length and confidence coefficient for the tolerance interval evaluation. It will be shown that Bayesian method using a reference prior overall performs better than MLE for the scenarios evaluated. When sample size is small, the Bayesian method using MDIP yields conservatively too wide tolerance intervals that are unsuitable basis for specification setting. The metrics for all methods worsened with increasing extent of censoring but improved with increasing sample size, as expected. This study demonstrates that although MLE is relatively simple and available in user‐friendly statistical software, it falls short in accurately and precisely producing tolerance limits that maintain the stated confidence depending on the scenario. The Bayesian method using noninformative prior, even though computationally intensive and requires considerable statistical programming, produces tolerance limits which are practically useful for specification setting. Real‐world examples are provided to illustrate the findings from the simulation study.