Empirical likelihood ratio for two-sample compound Poisson process problems

ABSTRACT

In this article, the author focus on the simple and yet very important case of making inference on the difference of two population means using the empirical likelihood approach of two-sample compound Poisson process. It is shown that the log empirical likelihood ratio statistic for the difference of two population means converges in distribution to ${\chi }_{(1)}^2$ as $n\to \mathrm{\infty }$. The simulation results show that the empirical likelihood ratio method is applicable.

Keywords:

• Confidence interval
• empirical likelihood
• compound Poisson process
• two-sample

JEL Classifications:

• C13
• C14
• G10
• G12

Disclosure statement

No potential conflict of interest was reported by the author.

Additional information

Funding

The Natural Science Foundation of Guangdong (2018A030313829), the Science and Technology Innovation Guidance Project of Zhaoqing, Guangdong (201804031503), the teaching reform project of Zhaoqing University (zlgc201745) and the Research Foundation of Zhaoqing University (201930).