AI engineering glossary · Statistics inference

What is permutation test?

Permutation test (also called Randomisation test): A hypothesis test that randomly shuffles group labels many times to build the distribution of a statistic under the null hypothesis of no group effect. The p-value is the share of shuffles at least as extreme as the real data.

Level: intermediateTopic: Statistics inference

Permutation test: an example

Shuffle 'A' and 'B' labels across 200 users 10,000 times; if only 120 shuffles show a gap as large as observed, p = 0.012.

Related terms

More Statistics inference terms

Where you learn it

Permutation test is part of the AI Engineering Program, which teaches it with notes, a hands-on lab and an exam. The first lesson is free.

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