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Yes, the permutation test is used in this problem to conduct a hypothesis testing about comparing the 95th percentile of the income of country a and that of country b.
Yes, the permutation test can be used in this problem. The permutation test is a nonparametric test that can be used to compare two or more groups to determine if there is a statistically significant difference between them. In this case, we can use the permutation test to compare the 95th percentile of the incomes of the two countries. The permutation test would involve randomly permuting the data for each country, then calculating the 95th percentile for each permutation. The difference in the 95th percentile between the two countries in the original data can then be compared to the differences in the 95th percentile of the permuted data to see if the difference is statistically significant.
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