General derivation of exact OC and ASN of SPRT when log of likelihood ratio takes only two integral multiples of a constant (Q802260)

Exact characteristics of Wald's sequential probability ratio test for testing \(p_ 1\) versus \(p_ 2\) \((p_ 1<p_ 2)\) in a Bernoulli population can be computed if the ratio of \(\log (p_ 2/p_ 1)\) to \(\log ((1\)-p\({}_ 1)/(1\)-p\({}_ 2))\) is rational. This paper presents a method of computation that has advantages over the one outlined by \textit{M. A. Girshick} [Contributions to the theory of sequential analysis. Ann. Math. Stat. 17, 282-298 (1946); see also: \textit{A. Wald}, Sequential analysis. (1947), Section A4] especially when the stopping bounds are far apart. The method is illustrated with an example.