What Is the Main Advantage of Using a Permutation Test

question 22

Multiple Choice

What is the main advantage of using a permutation test over a two-sample t test?

• A)The permutation test can be conducted more quickly than a two-sample t test and does not require the use of specialized tables.
• B)The permutation test is valid for much smaller sample sizes.
• C)The permutation test gives exact P-values.The two-sample t test gives only approximate P-values.
• D)The permutation test gives accurate P-values even when the sampling distribution of the difference in means is not close to Normal.

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Definitions:

Stabilizing

Actions or strategies aimed at maintaining or recovering economic balance and reducing volatility in financial markets or economies.

Consumption

The use of goods and services by households or individuals, usually the largest component of GDP.

Function

In mathematics and computer science, a relation between a set of inputs and a set of permissible outputs with the property that each input is related to exactly one output.

Labor Force

The total number of people who are of working age, capable of working, and actively seeking employment or currently employed.