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

Question

Quizplus · Accepted Answer

The P-value in a permutation test is calculated by locating the value of the test statistic on the permutation distribution and determining the proportion of permutations that are as extreme or more extreme than the observed test statistic. This approach does not rely on standard critical values or bootstrap estimates, but directly on the distribution of the test statistic under the permutation samples.

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