Large Sample Inference about the Ratio of Means in Two Independent Populations

Abstract

In a number of situations, for example in biology, psychology and neurosciences, researchers are interested in the ratio of two measured quantities. In this paper, we give an overview of different methods to constructing confidence limits for the ratios. Then by using the limiting theorems, a pivotal quantity for the ratio of population means will be presented. The results will be applied to construct confidence intervals and perform test of hypothesis. Finally, to investigate the ability of the proposed method, a modest simulation study is provided.

Keywords

• Cramer's Theorem; Fieller's Theorem; Ratio of Means; Simulation; Slutsky's Theorem.