The Stochastic Inequality Test - a Test for a Directional Treatment Effect
23 Pages Posted: 27 Apr 2022
Date Written: April 13, 2022
Abstract
The stochastic inequality test is an exact non-parametric test that can be used to infer whether values in one random sample tend to be higher than in another. In addition it can be used to derive a confidence interval around an intuitive measure of effect size that is readily interpretable for
both ordinal and cardinal data, and allows for \textit{ex-ante} power analysis. Unlike other commonly used tests, such as the t-test and the Wilcoxon-Mann-Whitney test, this inference is valid without requiring additional, often unrealistic and untestable, assumptions about the shape of the underlying population distributions.
Keywords: Exact test, distribution free test, stochastic difference
JEL Classification: C12, C14, C90
Suggested Citation: Suggested Citation