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Activity Number: 65
Type: Contributed
Date/Time: Sunday, August 2, 2009 : 4:00 PM to 5:50 PM
Sponsor: Biometrics Section
Abstract - #305409
Title: Hypothesis Testing for Equivalence Defined on Symmetric Open Intervals
Author(s): Daniel M. Ennis*+ and John Ennis
Companies: The Institute for Perception and The Institute for Perception
Address: 7629 Hull Street Road, Richmond, VA, 23235,
Keywords: Equivalence. ; Hypothesis testing ; Noncentral chi-square ; Power ; TOST
Abstract:

In a recent paper, Ennis and Ennis (2009) used an open interval to define equivalence and provided exact and approximate methods for testing a null hypothesis of nonequivalence. In statistical applications it is useful to know whether one item is equivalent to another or can act as a substitute for another. Applications of the concept of equivalence include substitution of generic drugs for brand-name drugs and modifications of products in response to government regulations. In this paper, a discussion of this newly developed theory of equivalency testing will be presented along with a comparison to existing methods such as the "two one-sided tests" (TOST) method. We provide numerical examples to illustrate this new theory and we demonstrate that although the TOST is a convenient approximation it is fundamentally inconsistent with the specification of the null hypothesis.


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