zoverw.c: Ratios of Normal Variables. This article extends and amplifies on results from a paper of over forty years ago. It provides software for evaluating the density and distribution functions of the ratio z/w for any two jointly normal variates z,w, and provides details on methods for transforming a general ratio z/w into a standard form, (a+x)/(b+y) , with x and y independent standard normal and a, b non-negative constants. It discusses handling general ratios when, in theory, none of the moments exist yet practical considerations suggest there should be approximations whose adequacy can be verified by means of the included software. These approximations show that many of the ratios of normal variates encountered in practice can themselves be taken as normally distributed. A practical rule is developed: If a < 2.256 and 4 < b then the ratio (a+x)/(b+y) is itself approximately normally distributed with mean μ = a/(1.01b - .2713) and variance σ2 = (a2 + 1)/(b2 + .108b - 3.795) μ2.
Keywords for this software
References in zbMATH (referenced in 8 articles , 1 standard article )
Showing results 1 to 8 of 8.
- Coghi, Francesco; Harris, Rosemary J.: A large deviation perspective on ratio observables in reset processes: robustness of rate functions (2020)
- Caginalp, Carey; Caginalp, Gunduz: Price equations with symmetric supply/demand; implications for fat tails (2019)
- Clark, Adam Thomas; Neuhauser, Claudia: Harnessing uncertainty to approximate mechanistic models of interspecific interactions (2018)
- Duris, Frantisek; Gazdarica, Juraj; Gazdaricova, Iveta; Strieskova, Lucia; Budis, Jaroslav; Turna, Jan; Szemes, Tomas: Mean and variance of ratios of proportions from categories of a multinomial distribution (2018)
- Białek, Jacek: Construction of confidence intervals for the Laspeyres price index (2015)
- Díaz-Francés, Eloísa; Rubio, Francisco J.: On the existence of a normal approximation to the distribution of the ratio of two independent normal random variables (2013)
- Mcilhagga, William: The canny edge detector revisited (2011)
- George Marsaglia: Ratios of Normal Variables (2006) not zbMATH