Papers › Minor Issues Escalated to Critical Levels in Large Samples: A Permutation-Based Fix
Minor Issues Escalated to Critical Levels in Large Samples: A Permutation-Based Fix
Xuekui Zhang, Li Xing, Jing Zhang, Soojeong Kim
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In the big data era, the need to reevaluate traditional statistical methods is paramount due to the challenges posed by vast datasets. While larger samples theoretically enhance accuracy and hypothesis testing power without increasing false positives, practical concerns about inflated Type-I errors persist. The prevalent belief is that larger samples can uncover subtle effects, necessitating dual consideration of p-value and effect size. Yet, the reliability of p-values from large samples remains debated. This paper warns that larger samples can exacerbate minor issues into significant errors, leading to false conclusions. Through our simulation study, we demonstrate how growing sample sizes amplify issues arising from two commonly encountered violations of model assumptions in real-world data and lead to incorrect decisions. This underscores the need for vigilant analytical approaches in the era of big data. In response, we introduce a permutation-based test to counterbalance the effects of sample size and assumption discrepancies by neutralizing them between actual and permuted data. We demonstrate that this approach effectively stabilizes nominal Type I error rates across various sample sizes, thereby ensuring robust statistical inferences even amidst breached conventional assumptions in big data. For reproducibility, our R codes are publicly available at: \url{https://github.com/ubcxzhang/bigDataIssue}.
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