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We carried out a simulation study based on the methodology of Newcombe (1998) to compare tests for the difference of two binomial proportions by applying different continuity corrections on saddlepoint approximation to tail probabilities. In this article, we proposed a new continuity correction based on the least common multiple of two sample sizes. We evaluated that the best test should have the actual Type I error rates that are, on the whole, closest to α, but not exceeding α, where α is nominal level of significance.
Communications in Statistics: Theory and Methods – Taylor & Francis
Published: May 27, 2008
Keywords: Continuity corrections; Lugannani and Rice formula; Saddlepoint approximation; Type I error rate; Primary 62E17; Secondary 60E99
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