#permutation test

Simplifying Freedman-Lane, the permutation method used in randomise and PALM.

Doing a permutation test with the general linear model (GLM) in the presence of nuisance variables can be challenging. Let the model be:

where is a matrix of observed variables, is a matrix of predictors of interest, is a matrix of covariates (of no interest), and is a matrix of the same size as with the residuals.

Because the interest is in testing the relationship between and ,…