How Do We Calculate the P-Value for a Permutation Test

question 25

Multiple Choice

How do we calculate the P-value for a permutation test?

• A)By comparing the bootstrap estimate to critical values in standard statistical tables
• B)By locating the value of the test statistic on the permutation distribution
• C)By computing the percentage of times the permutation resamples lead to values of the test statistic that exceed the standard critical value
• D)By determining whether the value under the null hypothesis is outside the permutation confidence interval

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Definitions:

Indifference Curves

Graphical representations in microeconomics to illustrate different combinations of two goods that provide a consumer with the same level of satisfaction or utility.

Equation

A mathematical statement that asserts the equality of two expressions, typically used in modeling economic relationships.

Indifference Curve

A graph representing combinations of various goods or bundles of goods giving the consumer equal satisfaction and utility, thus making the consumer indifferent.

Weighted

Weighted refers to giving different elements in a data set or equation varying levels of importance or influence, often according to their relevance or significance.