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What is a permutation test?

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Answer

  • Non-parametric test based on the exchangeability principle: shuffle group labels, recompute the test statistic, build a null distribution empirically.
  • Compute p-value = fraction of permutations with statistic ≥ observed.
  • Works for any statistic (mean,  median,  difference  in  R2)(\mathrm{mean}, \;\mathrm{median}, \;\mathrm{difference}\;\mathrm{in}\;R^{2}).
  • Distribution-free, only assumes exchangeability under H0.
  • Slow (usually 10k+ shuffles) but very general.
  • Modern default when you want strong assumption independence.
Check yourself — multiple choice
  • Only parametric
  • Shuffle group labels → empirical null → p = fraction with statistic ≥ observed; distribution-free, only needs exchangeability
  • Requires normality
  • Same as bootstrap

Permutation test: shuffle labels → empirical null; distribution-free.

#hypothesis-testing#non-parametric

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