Testing for Heterogeneity with Categorical Data: Permutation Solution vs. Bootstrap Method

Abstract

In this article the problem of comparing distributional heterogeneities for categorical variables is addressed. Specifically, the one-sided testing problem for heterogeneity comparisons is considered. For such a problem a bootstrap method is proposed and compared with a permutation method already present in literature. The power behavior of the two methods is compared through a Monte Carlo simulation study. The results of two real applications are shown.

Keywords:

• Bootstrap
• Categorical variables
• Heterogeneity
• Permutation test

Mathematics Subject Classification:

• Primary 62G10
• Secondary 62G09