Confidence intervals for the ratio of two variances

Abstract

In this paper we consider confidence intervals for the ratio of two population variances. We propose a confidence interval for the ratio of two variances based on the t-statistic by deriving its Edgeworth expansion and considering Hall's and Johnson's transformations. Then, we consider the coverage accuracy of suggested intervals and intervals based on the F-statistic for some distributions.

Keywords:

• confidence interval
• F-statistic
• Edgeworth expansion
• ratio of variances
• coverage accuracy

JEL Classification :

• 62G15