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Equivalence testing and its applications in industry  

Baik, Jai-Wook (Department of Information Statistics, Korea National Open University)
Publication Information
Journal of Korean Society for Quality Management / v.36, no.4, 2008 , pp. 1-6 More about this Journal
Abstract
As more and more data are collected one may ask whether the data collected within a short period of time are same. In this case traditional hypothesis testing of $H_o:{\mu}_1={\mu}_2$ vs $H_1:{\mu}_1{\neq}{\mu}_2$ is used to determine whether the data are same when there is no knowledge about equivalence testing. However, this type of hypothesis testing has the undesirable property of penalizing higher precision. So TOST is to be performed in the event of equivalence testing. In this study equivalence testing is introduced where one can find the applications in industry. Traditional two sample t testing is to be compared with the equivalent testing and the procedure to perform the equivalence testing is to be presented along with an example. Finally equivalence testing in terms of the other parameters such as variance, proportion or failure rate is to be sought.
Keywords
industrial statistics; equivalence testing; hypothesis testing; TOST;
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