An approach to randomness testing
One of the classical problems of statistical theory is to test a sequence for randomness. A core part of this problem is deciding what might be the alternative.
If this sequence is not random, then what kind of pattern might it have?
The choice of this alternative hypothesis will determine the important properties of the test. Some of the common alternatives are:
- Serial correlation
- Trends
- Seasonality
I am trying to analyze just how to approach this problem.
- What would be evidence that the sequence is strategic?
- What would be evidence that I have detected the manager's purpose.


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