Randomization Inference: Theory and Applications

Understand

We review approaches to statistical inference based on randomization.

• Permutation tests are treated as an important special case.
• Under a certain group invariance property, referred to as the ``randomization hypothesis,'' randomization tests achieve exact control of the Type I error rate in finite samples.
• Although this unequivocal precision is very appealing, the range of problems that satisfy the randomization hypothesis is somewhat limited.