Odds ratios estimation of rare event in binomial distribution

Abstract

We introduce the new estimator of odds ratios in rare events using Empirical Bayes method in two independent binomial distributions. We compare the proposed estimates of odds ratios with two estimators, modified maximum likelihood estimator (MMLE) and modified median unbiased estimator (MMUE), using the Estimated Relative Error (ERE) as a criterion of comparison. It is found that the new estimator is more efficient when compared to the other methods.