Pages

Tuesday, June 4, 2013

Simulating Critical Values for Some Test Statistics

This post comes at the request of Francesca, in a comment on an earlier post on Monte Carlo simulation.

The request was for some examples of how we can compute finite-sample critical values for different test statistics.  What this really means is that we want to simulate particular "quantiles" (points on the X-axis) for the distribution of the statistic.

Let's see what we can do about this. First, some background information.