This question is related to this post: https://stackoverflow.com/q/56288002/6638232
Basically, I am trying to perform a significance test using Monte Carlo simulation but I am having a problem in interpreting the given steps.
This is based on the following papers: https://journals.ametsoc.org/doi/full/10.1175/JCLI4217.1
The above paper calculates the significance of the difference in means between two periods :1961-1983 and 1984-2000 of tropical cyclone passage frequency (not-normally distributed) using Monte Carlo simulation.
Null hypothesis: There is no difference in the means between 1984-2000 and 1961-1983
I am using R for this
The following steps are given:
1). First, 9999 randomly sorted 40-yr time series of the typhoon passage frequency are prepared.
2). Averages of the former 23-yr values (1961-1983) minus those of the latter 17-yr values are calculated.
3). From the rank of the original difference value among 10000 samples, the significance level is estimated.
I am confused about the third step. How does one estimate a p-value by comparing the ranks of the original difference from the resampled data set?
I'll appreciate any help.