Problem

In medical investigations, the ratio is often of more interest than the difference (e....

In medical investigations, the ratio is often of more interest than the difference (e.g., individuals given treatment 1 are how many times as likely to recover as those given treatment 2?). Let . When m and n are both large, the statistic has approximately a normal distribution with approximate mean value ln(u) and approximate standard deviation .

a. Use these facts to obtain a large-sample 95% CI formula for estimating ln θ , and then a CI for θ itself.

b. Return to the heart-attack data of Example 1.3, and calculate an interval of plausible values for θ at the 95% confidence level. What does this interval suggest about the efficacy of the aspirin treatment?

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