Conditional Inference

So far, all the inferential methods we have discussed are unconditional in nature. In this chapter, we will demonstrate how exact confidence intervals or prediction intervals may be obtained using the conditional method. Conditional inference, first proposed by Fisher (1934), has been successfully applied by Lawless (1973, 1978, 1982) to develop inference based on complete as well as conventionally Type-II right censored samples. As a matter of fact, Lawless (1982, p. 199) indicated the use of conditional inference based on progressively Type-II right censored data; but a full length account of this topic has been provided by Viveros and Balakrishnan (1994) which naturally forms a basis for much of the discussion in this chapter.