Who Gives Direction to Statistical Testing? Best Practice Meets Mathematically Correct Tests
Year: 2015
Type: preprint
Abstract: We are interested in statistical tests that are able to uncover that one method is better than another one. The Wilcoxon-Mann-Whitney rank-sum and the Wilcoxon sign-rank test are the most popular tests for showing that two methods are different. Yet all of the 32 papers in Economics we surveyed misused them to claim evidence that one method is better, without making any additional assumptions. We present eight nonparametric tests that can correctly identify which method is better in terms of a stochastic inequality, median difference and difference in medians or means, without adding any assumptions. We show that they perform very well in the data sets from the surveyed papers. The two tests for comparing medians are novel, constructed in the spirit of Mood's test.
Source: SSRN Electronic Journal
DOI: 10.2139/ssrn.2660977
Author: Karl H. Schlag
Institution: University of Vienna
Language: English
Subfield: Statistics and Probability
Field: Mathematics
Domain: Physical Sciences
Open Access status: green
OpenAlex ID: W2284471196