Monday 4 December 2006

st.statistics - Statistical test comparing two relative frequencies

Assume they are four independent beta random variables $X_i$, with means $mu_i$.



Note that the density functions would depend on the observed samples.



We could then test the hypothesis that $mu_1mu_2>mu_3mu_4$ by setting up a quadruple integral of the joint density function over the set



${ (x_1,x_2,x_3,x_4)mid x_1x_2>x_3x_4 }$.



If this integral is small, we reject the hypothesis $mu_1mu_2>mu_3mu_4$.

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