The RATS Software Forum

Dear all,

In CATS it's possible to simulate the rank test distribution if levels shifts etc. are included. Is this a bootstrap or is there a difference between simulation an bootstrapping.

Sorry for that "beginnners"-question..

Thanks for your help!

Poppelwops

It's a simulation. The bootstrap resamples either the actual data or (more typically in econometrics) some aspect of it like residuals. This does fully random simulations of the data assuming Normal residuals.