Binomial Distribution: Likelihood Ratio Test for Equality of Several Proportions

In summary: Anyways, the final ratio is $$\lambda=\frac{\prod_{i=1}^4\szdp{y_i/(n-y_i)}^{y_i}}{\prod_{i=1}^4\szdp{y_i/(n-y_i)}^{n-y_i}}.$$In summary, a likelihood ratio test is constructed to compare the fractions of voters favoring candidate $A$ in four midcity political wards. The test is based on the null hypothesis that the proportions are the same in all four wards and the alternative hypothesis that at least one proportion is different. The likelihood function is used to calculate the likelihood ratio, which is simplified to $\lambda=\prod_{i=1}^4\sz
  • #1
Ackbach
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$\newcommand{\szdp}[1]{\!\left(#1\right)}
\newcommand{\szdb}[1]{\!\left[#1\right]}$
Problem Statement: A survey of voter sentiment was conducted in four midcity political wards to compare the fraction of voters favoring candidate $A.$ Random samples of $200$ voters were polled in each of the four wards. The numbers of voters favoring $A$ in the four samples can be regarded as four independent binomial random variables. Construct a likelihood ratio test of the hypothesis that the fractions of voters favoring candidate $A$ are the same in all four wards. Use $\alpha=0.05.$

Note 1: This is essentially Exercise 10.88 in Mathematical Statistics with Applications, 5th Ed., by Wackerly, Mendenhall, and Sheaffer.

Note 2: This is cross-posted here.

My Work So Far: Let $p_i$ be the proportion of voters favoring $A$ in Ward $i.$ So the null hypothesis is that $p_1=p_2=p_3=p_4,$ while the alternative hypothesis is that at least one proportion is different from the others. We have $f$ as the underlying distribution:
$$f(y_i)=\binom{n}{y_i}p_i^{y_i}(1-p_i)^{n-{y_i}}.$$
It follows that the likelihood function is
$$L(p_1,p_2,p_3,p_4)
=\prod_{i=1}^4\szdb{\binom{n}{y_i}p_i^{y_i}(1-p_i)^{n-y_i}}.$$
Then we construct $L\big(\hat\Omega_0\big)$ and $L\big(\hat\Omega\big).$ Note that under the null hypothesis, we will set $p_1=p_2=p_3=p_4=p.$ Hence,
$$L\big(\hat\Omega_0\big)
=\prod_{i=1}^4\szdb{\binom{n}{y_i}p^{y_i}(1-p)^{n-y_i}}.$$
The one remaining parameter $p$ we will replace with its MLE, which we can confidently say is $\big(\sum y_i\big)/(4n).$ Hence
\begin{align*}
L\big(\hat\Omega_0\big)
&=\prod_{i=1}^4\szdb{\binom{n}{y_i}\szdp{\frac{\sum
y_i}{4n}}^{\!\!y_i}\szdp{1-\frac{\sum y_i}{4n}}^{\!\!n-y_i}}\\
&=\frac{1}{(4n)^n}\prod_{i=1}^4\szdb{\binom{n}{y_i}\szdp{\sum
y_i}^{\!y_i}\szdp{4n-\sum y_i}^{\!n-y_i}}.
\end{align*}
Next, we turn our attention to $L\big(\hat\Omega\big):$
\begin{align*}
L\big(\hat\Omega\big)
&=\prod_{i=1}^4\szdb{\binom{n}{y_i}\szdp{\frac{y_i}{n}}^{\!y_i}
\szdp{1-\frac{y_i}{n}}^{\!n-y_i}}\\
&=\prod_{i=1}^4\szdb{\binom{n}{y_i}\szdp{\frac{y_i}{n}}^{\!y_i}
\szdp{\frac{n-y_i}{n}}^{\!n-y_i}}\\
&=\frac{1}{n^{4n}}\prod_{i=1}^4\szdb{\binom{n}{y_i}y_i^{y_i}
\,\szdp{n-y_i}^{n-y_i}}.
\end{align*}
Next we form the likelihood ratio:
\begin{align*}
\lambda
&=\frac{L\big(\hat\Omega_0\big)}{L\big(\hat\Omega\big)}\\
&=\frac{\displaystyle
\frac{1}{(4n)^n}\prod_{i=1}^4\szdb{\binom{n}{y_i}
\szdp{\sum y_i}^{\!y_i}\szdp{4n-\sum y_i}^{\!n-y_i}}}
{\displaystyle
\frac{1}{n^{4n}}\prod_{i=1}^4\szdb{\binom{n}{y_i}y_i^{y_i}
\,\szdp{n-y_i}^{n-y_i}}}\\
&=\frac{n^{4n}}{4^n\,n^n}\cdot
\prod_{i=1}^4\szdb{\szdp{\frac{\sum y_j}{y_i}}^{\!y_i}\,
\szdp{\frac{4n-\sum y_j}{n-y_i}}^{\!n-y_i}}\\
&=\szdp{\frac{n^3}{4}}^{\!\!n}\cdot
\prod_{i=1}^4\szdb{\szdp{\frac{\sum y_j}{y_i}}^{\!y_i}\,
\szdp{\frac{4n-\sum y_j}{n-y_i}}^{\!n-y_i}}.
\end{align*}

My Questions:
1. This looks wrong to me, because I'm told (and it totally makes sense) that $0\le\lambda\le 1,$ whereas everything in sight is greater than $1.$
2. Supposing this expression can be salvaged, what are the next steps? Should I take logs and try to simplify somehow?
3. I'm expecting to be able to obtain a test something along the lines of
$$\frac{(1/(4n))\sum_{j=1}^ny_j-\sum_{j=1}^n(y_j/n)}{\displaystyle\sqrt{\sum_{j=1}^4\dfrac{(y_j/n)(1-y_j/n)}{n}}},$$
although this test doesn't strike me as sensitive enough. We could have $y_1/n$ much too low, and $y_4/n$ much too high, and this test could still mark them down as equal because they "average out" to the right thing. What's the right generalization to the standard difference of proportions test?
 
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  • #2
COOLSerdash on CV.SE was able to simplify the likelihood ratio in such a way that I could tell mine is incorrect. Must have messed up in the algebra somewhere.
 

FAQ: Binomial Distribution: Likelihood Ratio Test for Equality of Several Proportions

What is a binomial distribution?

A binomial distribution is a probability distribution that describes the likelihood of a certain number of successes in a fixed number of independent trials, where each trial has only two possible outcomes (usually labeled as success or failure).

How is the likelihood ratio test used to test for equality of several proportions?

The likelihood ratio test is a statistical test used to compare the fit of two models, one of which is a null model and the other is an alternative model. In the case of testing for equality of several proportions, the null model assumes that all proportions are equal, while the alternative model allows for differences between the proportions. The likelihood ratio test then calculates a test statistic based on the likelihood of the data under both models, and compares it to a critical value to determine if there is enough evidence to reject the null hypothesis of equal proportions.

What is the null hypothesis in the likelihood ratio test for equality of several proportions?

The null hypothesis in this test is that all proportions are equal. In other words, there is no significant difference between the proportions of successes in each group or category being compared.

What is the significance level in the likelihood ratio test for equality of several proportions?

The significance level, also known as alpha, is the predetermined threshold used to determine if the test statistic is large enough to reject the null hypothesis. The most commonly used significance level is 0.05, meaning that if the test statistic has a probability of less than 5% of occurring under the null hypothesis, the null hypothesis can be rejected.

What are some applications of the likelihood ratio test for equality of several proportions?

This test can be used in a variety of fields, such as medicine, psychology, and marketing, to compare the proportions of successes in different groups or categories. For example, it can be used to determine if a new medication is more effective than an existing one, or if there is a significant difference in the success rates of different advertising strategies.

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