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Intermediate Proof

The Sign Test: A Simple Measure of Directional Change

Students often struggle with whether to exclude ties when Xi=θ0 X_i = \theta_0 . In the strict Sign Test, ties should be removed from the sample size n n , effectively reducing the power of the test. Failing to adjust n n leads to an artificially inflated, invalid Type I error rate.
Institutional Reference: Applied Statistics
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