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Thread: Ratio vs difference when testing for equality?

  1. #1
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    Ratio vs difference when testing for equality?

    When performing a test to see whether an estimator A for two populations is the same, is it more natural to use the difference

    A1 A2 = 0

    or the ratio

    A1 / A2 = 1

    (or other)?

    Is there a universal preference or is it situational?
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  2. #2
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    Re: Ratio vs difference when testing for equality?

    comparing means I'd use the expected value of the difference.

    comparing standard deviations (or higher moments) I'd use the expected value of the ratio.
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  3. #3
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    Re: Ratio vs difference when testing for equality?

    So would the logic "use difference for expectancy to account for potential expectancy = 0; use ratio everywhere else because it's generally easier."

    Be correct?
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