Formula for calculating bootstrap t-value

Frequently asked questions about PLS path modeling.
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mkidd

Formula for calculating bootstrap t-value

Post by mkidd »

What is the formula used for calculating the bootstrap t-value? I have done a bootstrap with 1000 replicates, and if I use the 1000 estimates for one of the coeffiecients and calculate the t-statistic for the hypothesis that the coefficient=0, (mean divided by stdev divided by root of 1000) then I dont get the same as calculated by SmartPLS. What I am doing here in any case does not make much sense because of the large "bootstrap sample size" the test is based on.
stefanbehrens
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Post by stefanbehrens »

Dear Dr. Kidd,

the formula for the t-values is as follows:

t = beta / stdev_bootstrap(beta)

You have to keep in mind that the standard deviation of the bootstrap estimates is equivalent to the standard error of the original parameter estimate. Thus, there is no need to divide by SQRT(1000).

Hope this makes sense,
Stefan
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