When doing a simulation study, we calculate a test statistic over and over to create a distribution of values for comparison to our original test statistic value.

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In simulation studies, calculating a test statistic repeatedly using resampled or simulated data allows us to create a distribution of that statistic. This distribution can then be used to compare against the original test statistic value to assess its significance or rarity under the null hypothesis.

When Doing a Simulation Study, We Calculate a Test Statistic