Use the Contingency platform to test if the relative rate of not filing an auto claim is equivalent for young and elder drivers. You consider a relative risk between the groups of drivers to be equivalent for values between 0.8 and 1.25.
1. Select Help > Sample Data Folder and open Auto Raw Data.jmp.
2. Select Analyze > Fit Y by X.
3. Select Claim(Y/N) and click Y, Response.
4. Select AgeClass and click X, Factor.
5. Click OK.
6. Click the Contingency Analysis red triangle menu and select Equivalence Tests > Relative Risk.
7. In the Margin and Alpha panel, type 0.8 for the Ratio.
8. In the X Category of Interest panel, select Young.
9. Click OK.
Figure 7.17 Equivalence Test for Relative RiskĀ
The relative risk of not filing a claim for young drivers versus elder drivers is 0.7118. From the two one-sided tests (TOST) equivalence test procedure, you cannot conclude that these groups are equivalent in their rates of filing claims.