Inferences on the difference between future observations for comparing two treatments

A. Hayter

Journal of Applied Statistics, 2013, vol. 40, issue 4, 887-900

Abstract: The comparison of two treatments with normally distributed data is considered. Inferences are considered based upon the difference between single potential future observations from each of the two treatments, which provides a useful and easily interpretable assessment of the difference between the two treatments. These methodologies combine information from a standard confidence interval analysis of the difference between the two treatment means, with information available from standard prediction intervals of future observations. Win-probabilities, which are the probabilities that a future observation from one treatment will be superior to a future observation from the other treatment, are a special case of these methodologies. The theoretical derivation of these methodologies is based upon inferences about the non-centrality parameter of a non-central t-distribution. Equal and unequal variance situations are addressed, and extensions to groups of future observations from the two treatments are also considered. Some examples and discussions of the methodologies are presented.

Date: 2013
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DOI: 10.1080/02664763.2012.758245

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