A walkthrough of permutation tests and how they can be applied to time series data.

 

 

Figure 1: example of a permutation test distribution. The red vertical line is our observed data test statistic. Here, 98.2% of our permutation distribution is below our red line, indicating a p-value of 0.018. Image by author.

Permutation Tests 101

Figure 2: framework for a permutation test. Image by author.

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Source: towardsdatascience.com