A0434
Title: Smoothed empirical likelihood for the difference of two quantiles with the paired sample
Authors: Pangpang Liu - Purdue University (United States)
Yichuan Zhao - Georgia State University (United States) [presenting]
Abstract: A novel smoothed empirical likelihood method is proposed for the difference of quantiles with paired samples. While the empirical likelihood for the difference of two quantiles with independent samples has been studied, it is crucial to develop a statistical procedure that accounts for the dependence between paired samples. To this end, two estimating equations are proposed for the difference of two quantiles, and a nuisance parameter is introduced in the smoothed empirical likelihood framework. It is demonstrated that the approach yields a limiting distribution that follows Wilks' theorem. Extensive simulation studies confirm that the smoothed empirical likelihood method outperforms the normal approximation and method M in most cases. Finally, the usefulness of the proposed method is illustrated by applying it to a real-world data set, estimating the interval of the quantile difference of GDP between different years.
