I’m preparing a lecture on simulation for a statistical modeling class, and I plan on describing a couple of cases where simulation is intrinsic to the analytic method rather than as a tool for exploration and planning. MCMC methods used for Bayesian estimation, bootstrapping, and randomization tests all come to mind.
Randomization tests are particularly interesting as an approach to conducting hypothesis tests, because they allow us to avoid making unrealistic assumptions. I’ve written about this before under the rubric of a permutation test. The example I use here is a little a different; truth be told, the real reason I’m sharing is that I came up with a nice little animation to illustrate a simple randomization process. So, even if I decide not to include it in the lecture, at least you’ve seen it.
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