Inferences on the Difference and Ratio of the Means of Two Independent Two-Parameter Exponential Distribution

Methods for interval estimation and hypothesis testing about the ratio of expected lifetimes of two independently distributed two-parameter exponential distribution based on the concept of generalized variable approach are proposed. As assessed by simulation, the coverage probabilities of the proposed approach are found to be very close to the nominal level even for small samples. The proposed new approaches are conceptually simple and are easy to use. Similar procedures are developed for constructing confidence intervals and hypothesis testing about the difference between means of two independent two-parameter exponential distribution.