Misuse of the 'modified' t statistic in regulatory telecommunications

J.D. Opdyke

Telecommunications Policy, 2004, vol. 28, issue 11, 821-866

Abstract: Since the enactment of the Telecommunications Act of 1996 (1996), extensive expert testimony has justified use of the 'modified' t statistic (Brownie et al. Biometrics 46 (1990) 259-266) for performing two-sample hypothesis tests on Bell companies' CLEC and ILEC performance measurement data. This paper demonstrates how key statistical claims made about the 'modified' t in this setting are false, leading not only to incorrect inferences as it currently is being used, but also to the possible undermining of the primary stated objective of the Act--the promotion of competition in the newly deregulated local telephone service markets. A simulation study provides strong evidence for the use of several other easily-implemented statistical procedures in this context; they should be useful in other settings as well.

Keywords: Telecommunications; Act; Parity; testing; OSS; testing; Performance; metric; ILEC; CLEC; Location-scale; Mean-variance (search for similar items in EconPapers)
Date: 2004
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