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Dichotomous transformations for statistical inference about odds ratios

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  • Xiangning Huang
  • Baibing Li

Abstract

Dichotomous transformations for continuous outcomes are commonly used. In this paper, we investigate dichotomisation for statistical inference about odds ratios in a situation where two underlying distributions from which independent samples are drawn are skewed and unknown. Under some mild conditions it is shown that a suitable choice of the cutpoint of a dichotomous transformation must lie within the range bounded by the two medians of the two underlying distributions, within which there exists a unique optimal cutpoint in terms of the asymptotic efficiency of point estimation and hypothesis testing. The issue of selecting a cutpoint is also linked to the choice amongst some existing non-parametric tests.

Suggested Citation

  • Xiangning Huang & Baibing Li, 2009. "Dichotomous transformations for statistical inference about odds ratios," Journal of Nonparametric Statistics, Taylor & Francis Journals, vol. 21(1), pages 41-48.
    • Handle: RePEc:taf:gnstxx:v:21:y:2009:i:1:p:41-48
    DOI: 10.1080/10485250802471551
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    References listed on IDEAS

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    1. Mark Bagnoli & Ted Bergstrom, 2006. "Log-concave probability and its applications," Studies in Economic Theory, in: Charalambos D. Aliprantis & Rosa L. Matzkin & Daniel L. McFadden & James C. Moore & Nicholas C. Yann (ed.), Rationality and Equilibrium, pages 217-241, Springer.
    2. An, Mark Yuying, 1998. "Logconcavity versus Logconvexity: A Complete Characterization," Journal of Economic Theory, Elsevier, vol. 80(2), pages 350-369, June.
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