Abstract
If U has a normal distribution, then is said to have a folded normal distribution. The distribution can be viewed as one involving normal measurements without their algebraic sign. As a natural extension of the distribution, we propose a distribution of the ratio of two correlated folded normals and demonstrate its statistical applicability by considering some properties of the distribution. Necessary theories on the expectation of a function of
are provided to derive the properties. Likelihood inference for the proposed distribution is developed, and a simulation study is implemented to verify the inference. Further, four examples are presented to illustrate the practical application of the distribution.
Disclosure statement
No potential conflict of interest was reported by the author.