Permutation testing in stats explained with example
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SOLVED: In the sampling version of permutation testing, the one-sided P-value is P̂ = (X 1)∕(N 1), where X is the number of permutation test statis- tics that are as large or larger than the observed test statistic. Suppose the true P-value (for the exhaustive test, conditional on the observed data) is p. a) What is the variance of P̂? b) What is the variance of P̂2 for the two-sided test (assuming that p is not close to 0.5, where p is the smaller true one-sided P-value?)
SOLVED: In the sampling version of permutation testing, the one-side…
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