The term dilution assay is generally used to designate a special type of bioassay in which one or more preparations (e.g. a drug) are administered to experimental units at different dose levels inducing a measurable biological response. The dose levels are prepared by dilution in a diluent that is inert in respect of the response. The experimental units can for example be cell-cultures, tissues, organs or living animals. The biological response may be quantal (e.g. positive/negative) or quantitative (e.g. growth). The goal is to relate the response to the dose, usually by interpolation techniques, and in many cases to express the potency/activity of the test preparation(s) relative to a standard of known potency/activity. Dilution assays can be direct or indirect. In a direct dilution assay the amount of dose needed to produce a specific (fixed) response is measured, so that the dose is a stochastic variable defining the tolerance distribution. Conversely, in an indirect dilution assay the dose levels are administered at fixed dose levels, so that the response is a stochastic variable. Statistical models For a mathematical definition of a dilution assay an observation space is defined and a function so that the responses are mapped to the set of real numbers. It is now assumed that a function exists which relates the dose to the response in which is an error term with expectation 0. is usually assumed to be continuous and monotone. In situations where a standard preparation is included it is furthermore assumed that the test preparation behaves like a dilution (or concentration) of the standard , for all where is the relative potency of . This is the fundamental assumption of similarity of dose-response curves which is necessary for a meaningful and unambiguous definition of the relative potency. In many cases it is convenient to apply a power transformation with or a logarithmic transformation . The latter can be shown to be a limit case of so if is written for the log transformation the above equation can be redefined as , for all . Estimates of are usually restricted to be member of a well-defined parametric family of functions, for example the family of linear functions characterized by an intercept and a slope. Statistical techniques such as optimization by Maximum Likelihood can be used to calculate estimates of the parameters. Of notable importance in this respect is the theory of Generalized Linear Models with