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Tests and Confidence Intervals for an Extended Variance Component Using the Modified Likelihood Ratio Statistic
Author(s) -
CHRISTENSEN OLE F.,
FRYDENBERG MORTEN,
JENSEN JENS L.,
PEDERSEN JØRGEN G.
Publication year - 2007
Publication title -
scandinavian journal of statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.359
H-Index - 65
eISSN - 1467-9469
pISSN - 0303-6898
DOI - 10.1111/j.1467-9469.2006.00520.x
Subject(s) - mathematics , statistics , confidence interval , statistic , likelihood ratio test , variance components , variance (accounting) , confidence region , restricted maximum likelihood , component (thermodynamics) , empirical likelihood , econometrics , maximum likelihood , physics , accounting , business , thermodynamics
. The large deviation modified likelihood ratio statistic is studied for testing a variance component equal to a specified value. Formulas are presented in the general balanced case, whereas in the unbalanced case only the one‐way random effects model is studied. Simulation studies are presented, showing that the normal approximation to the large deviation modified likelihood ratio statistic gives confidence intervals for variance components with coverage probabilities very close to the nominal confidence coefficient.