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Published online by Cambridge University Press: 27 July 2009
The materials-loss problem is examined under the assumption that one wishes to minimize the maximum expected amount of material diverted. A solution is obtained in the case of constant diversion under a simple sequential probability ratio test (SPRT). Extensions to the cases of correlated errors, random diversion schemes, and the Page and Shirayev-Roberts tests are examined. A thought-provoking application to the regulation of strategic special nuclear materials is given.