8.5 Testing Two Proportions Using a Simulation

permutation test

a simulation method which redistributes the positive and negative responses among groups that are the same size as the original samples by pooling them together and then randomly reassigning them, recalculating the proportions afterwards - the test is repeated multiple times to see if the difference shown in the original sample is likely or unlikely

generating random numbers

the process of using a random number table or technology to create a sequence of random digits

trial

each instance of a random phenomenon - can also refer to each instance of a simulation - it is recommended to have a large number to increase the accuracy of the simulation

simulation component

the simulated event occurring - like an event in a probability scenario

response variable

the outcome of each trial in a simulation

simulation

a process that mimics reality by using random numbers to represent the outcomes of real events