"The delta method, in its essence, expands a function of a random variable about its mean, usually with a one-step Taylor approximation, and then takes the variance." The term also refers to a method for showing that a function of an asymptotically normal statistical estimator is asymptotically ...

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calculating variance of sum of predicted costs from two-part model

I have a question regarding the calculation of the variance of the sum of predicted health care costs using a two-part regression model. Details are below, but it boils down to how to calculate the ...
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53 views

Do I apply delta method correctly?

I'm no mathematician, so please consider the whole explanation as a subject to criticism and optimization. I'm trying to build a model and calculate an estimate of error variance for the following ...
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1answer
55 views

Approximate distribution of normal squared

I am studying for a test, one section of which will cover the delta method. This problem came from that section: Let $X\sim N(\mu,n^{-1})$. Find an approximate distribution of $X^2$. (It also asks ...
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78 views

Delta method in a multinomial logistic regression

I am estimating a multinomial logistic model with R (package "mlogit"). I use the estimated coefficients to get the estimated odds and then I apply the Delta Method (package "deltamethod") to get ...
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102 views

Delta Method Derivation

I at looking at Xu and Long's paper on using the delta method to construct CI's for logistic regression predicted probabilities. I am generally following except for two questions I am hoping someone ...
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1answer
76 views

Elementary approach to higher order asymptotics

I am trying to understand “higher order asymptotics”. I find several texts on Likelihood asymptotics, nothing’s easy to read... if you have any nice pointers on this direction, I’ll be interested; ...
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72 views

Can we approximate the distribution of S?

I want to understand how the sampling distribution of the whole covariance matrix behaves for large $n$. I am trying to use the delta method and multivariate CLT. I am trying to show that when the ...
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178 views

Can RSD be pooled or is it valid to use the uncertainty propagation rule?

This might be a strange case, but I'm sure that somebody in here can help me and that I'm perhaps not the only one who wants to pool RSDs correctly. Consider this: The mean weight of a powder bed is ...
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207 views

What is a “polynomially bounded” function, and why is this a requirement of the The Delta Method?

I am reading a paper "A note on the Delta Method" by Gary Oehlert, JASA, 1992. I am trying to estimate the variance of a function of a random variable, but first I want to understand the limitations ...
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1answer
117 views

How to describe variation on multiple levels?

This is continuation for a series of questions (1, 2). I have a data set from an experiment with 2x2 design. A replicate consists of 20-50 normally distributed replicate measurements. Each treatment ...
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1answer
544 views

Calculating the Variance using Delta Method

I'm trying to find the variance of $L$, $Var(L)$, using the delta method (I want to find a closed form). $L$ is defined as: $$L = \frac{A}{B} + \frac{C}{D}$$ All $A$, $B$, $C$, and $D$ are dependent. ...
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125 views

The mean and Variance of $log(Combination Index)$

In biological sciences, ($CI$) stands for the Combination Index which is a conventional method for dose-response assessment and drug interaction analysis. It can be defined as: $$CI = ...
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1answer
451 views

Delta method and correlated variables

I have been reading about the delta method in regards to auto regressive distributed lag models. This is very new to me, so excuse any beginner mistakes. The problem is as follows: We have a model ...
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1answer
200 views

How to compute asymptotic confidence intervals for differences in quantiles?

Can anyone give me advice on computing the asymptotic confidence intervals for a difference in quantiles of a distribution? For example, I have fit a log-normal distribution to doubly interval ...
4
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1answer
188 views

Power analysis for matched poisson variables

I have two matched groups consisting of 22 observations each for a Poisson distributed variable. I am interested in evaluating the power to detect a 20% decrease in the outcome for the second group. I ...
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2answers
621 views

How do you calculate standard errors for a transformation of the MLE?

I need to make inference about a positive parameter $p$. To acomodate the positiveness I reparametrized $p=\exp(q)$. Using MLE routine I computed point estimate and s.e for $q$. The invariance ...
6
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1answer
229 views

Limiting distribution of a squared sum of random variables

Let $S_n = \frac{1}{n}\sum_{i=1}^n X_i$, and $T_n = \frac{1}{n}\sum_{j=1}^nY_i$, where The $X_i$ are iid, the $Y_i$ are iid (with a different law) $X_i$, and $Y_i$ are dependent For $i\neq j$, ...
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4k views

Variance of a function of one random variable

Lets say we have random variable $X$ with known variance and mean. The question is: what is the variance of $f(X)$ for some given function f. The only general method that I'm aware of is the delta ...