On statistical deficiency: Why the test statistic of the matching method is hopelessly underpowered and uniquely informative

Abstract

The random variate m is, in combinatorics, a basis for comparing permutations, as well as the solution to a centuries-old riddle involving the mishandling of hats. In statistics, m is the test statistic for a disused null hypothesis statistical test (NHST) of association, the matching method. In this paper, I show that the matching method has an absolute and relatively low limit on its statistical power. I do so first by reinterpreting Rae's theorem, which describes the joint distributions of m with several rank correlation statistics under a true null. I then derive this property solely from m's unconditional sampling distribution, on which basis I develop the concept of a deficient statistic: a statistic that is insufficient and inconsistent and inefficient with respect to its parameter. Finally, I demonstrate an application for m that makes use of its deficiency to qualify the sampling error in a jointly estimated sample correlation.