The Stochastic Inequality Test - a Test for a Directional Treatment Effect

23 Pages Posted: 27 Apr 2022

See all articles by Karl H. Schlag

Karl H. Schlag

University of Vienna - Department of Economics

James Tremewan

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

Schlag, Karl H. and Tremewan, James, The Stochastic Inequality Test - a Test for a Directional Treatment Effect (April 13, 2022). Available at SSRN: https://ssrn.com/abstract=4082855 or http://dx.doi.org/10.2139/ssrn.4082855

Karl H. Schlag

University of Vienna - Department of Economics ( email )

Oskar-Morgenstern-Platz 1
Vienna, A-1090
Austria

No contact information is available for James Tremewan

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
74
Abstract Views
296
Rank
581,951
PlumX Metrics