Commodity Prices Analysis Reveals Major Flaw in Statistical Testing Methods
The study found that using a common statistical method on data with a specific type of error can lead to inaccurate results. They used a simulation to show that the method's accuracy is affected by this error type, especially with small sample sizes. Even as sample size increases, the problem persists. They also discovered that this error type is common in U.S. commodity prices. The researchers suggest checking for this error type before using the standard method to analyze data.