Federal Circuit Sends Back Use of Statistical Test Over Departure From Statistical Literature
The Court of Appeals for the Federal Circuit in an April 21 opinion remanded the Commerce Department's use of the Cohen's d statistical test in its differential pricing analysis to target "masked" dumping, finding that the agency erred in departing…
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from the statistical literature when it used a simple average to calculate the pooled standard deviation. The appellate court said that Commerce did not adequately justify its use of a simple average for the Cohen's d denominator and its deviation from normal practice when running the test. While the agency is not "duty-bound" to follow the literature, it must have a reasonable basis from departing with it given its reliance on the literature in using the test, the court said.