Document Type

Journal Article

Department/ Unit

Department of Economics

Abstract

This paper develops a new test, the trinomial test, for pairwise ordinal data samples to improve the power of the sign test by modifying its treatment of zero differences between observations, thereby increasing the use of sample information. Simulations demonstrate the power superiority of the proposed trinomial test statistic over the sign test in small samples in the presence of tie observations. We also show that the proposed trinomial test has substantially higher power than the sign test in large samples and also in the presence of tie observations, as the sign test ignores information from observations resulting in ties.

Publication Year

2011

Journal Title

Mathematics and Computers in Simulation

Volume number

81

Issue number

6

Publisher

Elsevier

First Page (page number)

1153

Last Page (page number)

1160

Referreed

1

DOI

10.1016/j.matcom.2010.11.002

ISSN (print)

0378-4754

Link to Publisher’s Edition

http://dx.doi.org/10.1016/j.matcom.2010.11.002

Keywords

Sign test, Trinomial test, Non-parametric test, Ties, Test statistics

Included in

Economics Commons

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