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A trinomial test for paired data when there are many ties
Authors:Guorui BianMichael McAleer  Wing-Keung Wong
Affiliation:a Department of Statistics, East China Normal University, China
b Econometric Institute, Erasmus School of Economics, Erasmus University Rotterdam, The Netherlands
c Tinbergen Institute, The Netherlands
d Institute of Economic Research, Kyoto University, Japan
e Department of Economics and Institute for Computational Mathematics, Hong Kong Baptist University, Hong Kong
Abstract:This paper develops a new test, the trinomial test, for pairwise ordinal data samples to improve the power of the sign test by modifying its treatment of zero differences between observations, thereby increasing the use of sample information. Simulations demonstrate the power superiority of the proposed trinomial test statistic over the sign test in small samples in the presence of tie observations. We also show that the proposed trinomial test has substantially higher power than the sign test in large samples and also in the presence of tie observations, as the sign test ignores information from observations resulting in ties.
Keywords:C12  C14  C15
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