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Power series estimator for binary data
Authors:Chien-Hua Wu  Shu-Mei Wan
Affiliation:a Department of Applied Mathematics, Chung-Yuan Christian University, Chung-Li 32023, Taiwan
b Department of Finance, Lunghwa University of Science and Technology, Taoyuan 333, Taiwan
Abstract:There are several commonly used measures of association between treatment and control event rates in the population, including odds ratios, relative risk and number needed to treat. Conventionally those parameters are estimated by the sample proportion estimators. In this paper, we show that the sample proportional estimators tend to overestimate. Fortunately, those measurements are estimable by the power series estimators and they converge to UMVUE with a speed of convergency depending on big-O. For instance, it converges slowly for the number needed to treat if the difference between two sample proportions is close to zero.
Keywords:Power series estimator   Odds ratio   Number needed to treat   Relative risk
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