Inference for Rare Events
Whatever the circumstance, we’ll describe the results using the success/failure terminology of binomial random variables and inference for proportions. A success might be a good thing (a customer who makes a purchase on a Web site) or a bad thing (a component fails a diagnostic test), but we’ll call them both successes. The probability of a success in the population is p.
In each of the three examples, we’re faced with data that have no sample variation.
Not one of the 43 patients on the placebo therapy in the clinical trial had a cardiac-related adverse event.
None of the 101 Aaa-rated issuers of corporate debt defaulted in 2010.
All of the 400 tested electronic components satisfied the acceptance test.
None of these ...
Get Statistics for Business: Decision Making and Analysis, 3rd Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
