Test of Independence for Baker’s Bivariate Distributions.

Baker (2008) introduced a new method for constructing multivariate distributions with given marginals based on order statistics. In this paper, we provide a test of independence for a pair of absolutely continuous random variables (X,Y) jointly distributed according to Baker’s bivariate distributions. Our purpose is to test the hypothesis thatXandYare independent versus the alternative thatXandYare positively (negatively) quadrant dependent. The asymptotic distribution of the proposed test statistic is investigated. Also, the powers of the proposed test and the class of distribution-free tests proposed by Kochar and Gupta (1987) are compared empirically via a simulation study. [ABSTRACT FROM AUTHOR]