Suppose we use a permutation test to test a one-sided alternative hypothesis and estimate the P-value to be 0.02.If we used 1600 resamples,what is the approximate standard deviation of the estimated P-value?
A)0.0000123
B)0.0005
C)0.0035
D)This question makes no sense.P-values do not have standard deviations.

Question

Quizplus · Accepted Answer

When using a permutation test with a large number of resamples (such as 1600), the estimated P-value can be considered approximately normally distributed. Therefore, we can use the formula for the standard deviation of a binomial proportion to estimate the standard deviation of the P-value: sqrt(p(1-p)/n), where p is the estimated P-value (0.02) and n is the number of resamples (1600). Plugging in these values, we get sqrt(0.02*0.98/1600) = 0.0035.

Suppose We Use a Permutation Test to Test a One-Sided