Set and absorb the common multiplier into . The model becomes
It is a Cox proportional-hazards model; the unknown baseline does not need a parametric form. The equality hypothesis is precisely . The absolute multipliers and have a scale ambiguity, but their hazard ratio is identifiable when both groups supply information.
For an untied event at , let be the risk set just before the event, and let be the subject who fails. The conditional event probability is proportional to that subject's hazard, so the common baseline cancels:
Multiply these factors to form the Cox partial likelihood. One can maximize it and compare its maximum with its value at using a partial likelihood-ratio test, or use the corresponding score test.
Explicitly, with group risk-set sizes and observed event indicator for group 1, the score at zero and its information are
Under the null the event label has exactly this Bernoulli distribution conditional on its current risk set. Hence is the usual one-degree-of-freedom log-rank test statistic, with an asymptotic chi-squared distribution when and enough informative events are observed. Censoring can differ between groups, provided it is independent of event time within the conditioning model. If there are recorded ties, use the appropriate tied-risk-set version: for events the null variance contribution is .
For each observed event with , let be its risk set. The Cox partial likelihood is
Maximize it to obtain , estimate its variance from the observed partial information, and test using a partial likelihood-ratio test, Wald test, or score test. A positive fitted coefficient means the group with has the larger hazard.