Abstract
Interval estimation of the difference of two independent binomial proportions is an important problem in many applied settings. Newcombe (1998) compared the performance of several existing asymptotic methods, and based on the results obtained, recommended a method known as Wilson's method, a modified version of a method originally proposed for single binomial proportion. In this article, we propose a method based on profile likelihood, where the likelihood is weighted by noninformative Jeffrey' prior. By doing extensive simulations, we find that the proposed method performs well compared to Wilson's method. A SAS/IML program implementing this method is also given with this article.
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