Skip to content
Prev 176865 / 398506 Next

p-values from bootstrap - what am I not understanding?

Johan Jackson wrote:
There's nothing particularly wrong about this line of reasoning, or at 
least not (much) worse than the calculation of CI. After all, one 
definition of a CI at level 1-alpha is that it contains values of theta0 
for which the hypothesis theta=theta0 is accepted at level alpha. (Not 
the only possible definition, though.)

The crucial bit in both cases is the assumption of approximate 
translation invariance, which holds asymptotically, but maybe not well 
enough in small samples.

There are some braintwisters connected with the bootstrap; e.g., if the 
bootstrap distribution is skewed to the right, should the CI be skewed 
to the right or to the left? The answer is that it cannot be decided 
based on the distribution of theta* alone since that depends only on the 
true theta, and we need to know what the distribution would have been 
had a different theta been the true one.

The point is that these things get tricky, so most people head for the 
safe haven of permutation testing, where it is rather more easy to feel 
that you know what you are doing.

For a rather different approach, you might want to look into the theory 
of empirical likelihood (book by Art Owen, or just Google it).