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PPT10-Nonparametric Methods

This document outlines nonparametric statistical methods covered in Week 10, including the sign test, Wilcoxon signed-rank test, Mann-Whitney-Wilcoxon test, Kruskal-Wallis test, and rank correlation. The sign test and Wilcoxon signed-rank test are used for paired samples, while the Mann-Whitney-Wilcoxon test and Kruskal-Wallis test are used for independent samples. Rank correlation measures the association between two variables based on their rank order. These nonparametric methods allow for inferences about populations without assuming a specific probability distribution.

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0% found this document useful (0 votes)
106 views17 pages

PPT10-Nonparametric Methods

This document outlines nonparametric statistical methods covered in Week 10, including the sign test, Wilcoxon signed-rank test, Mann-Whitney-Wilcoxon test, Kruskal-Wallis test, and rank correlation. The sign test and Wilcoxon signed-rank test are used for paired samples, while the Mann-Whitney-Wilcoxon test and Kruskal-Wallis test are used for independent samples. Rank correlation measures the association between two variables based on their rank order. These nonparametric methods allow for inferences about populations without assuming a specific probability distribution.

Uploaded by

Rudy Silitonga
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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STAT6145 – Business Statistics

Week 10
Nonparametrics Methods
Outline

• Sign Test
• Wilcoxon Signed-
Rank Test
• Mann-Whitney-
Wilcoxon Test
• Kruskal-Wallis Test
• Rank Correlation
References
• David R. Anderson. (2018). Statistics for
business and economics. 13. Cengage
Learning. New Zealand. ISBN:
9781337094160.
• Chapter 18
Nonparametric Methods
• Nonparametric methods can be used to
make inferences about a population without
requiring an assumption about the specific
form of the population’s probability
distribution.
Sign Test

• The sign test is a versatile nonparametric method for


hypothesis testing
• The sampling distribution uses the binomial distribution
with p = .50
• Two applications of the sign test: one involving a
hypothesis test about a population median and one
involving a matched-sample test about the difference
between two populations.

5
Sign Test
Hypotesis
The sign test hypotheses about the population median
: Median = 450
: Median ≠ 450

are converted to the following hypotheses about the


binomial probability p.
: p = .5
: p ≠ .5
Wilcoxon Signed-Rank
Test
• The Wilcoxon signed-rank test is a
nonparametric procedure for analyzing data
from a matched-sample experiment.
Wilcoxon Signed-Rank
Test
Use the Wilcoxon signed-rank test for the difference between
the median completion times for the two production methods.

Two-tailed Wilcoxon signed-rank tests


: Median for method A – Median for method B = 0
: Median for method A – Median for method B ≠ 0

If H0 cannot be rejected, we will not be able to conclude that the median


completion times are different.

If H0 is rejected, we will conclude that the median completion times are


different.

We will use a .05 level of significance for the test.


Wilcoxon Signed-Rank
Test
One-tailed Wilcoxon signed-rank tests

: Median for method A – Median for method B ≤ 0


: Median for method A – Median for method B > 0

Rejecting would provide the conclusion that method A has the


greater median completion time and method B has the smaller
median completion time.
Mann-Whitney-Wilcoxon
Test
Hypothesis:
: The two populations are identical
: The two populations are not identical

If H0 is rejected, we are using the test to conclude that


the populations are not identical and that population 1
tends to provide either smaller or larger values than
population 2.
Kruskal-Wallis Test
• The nonparametric Kruskal-Wallis test is
based on the analysis of independent
random samples from each of k populations.
• This procedure can be used with either
ordinal data or quantitative data and does
not require the assumption that the
populations have normal distributions.
Kruskal-Wallis Test
: All populations are identical
: Not all populations are identical

If H0 is rejected, we will conclude that there is a difference


among the populations with one or more populations
tending to provide smaller or larger values compared to
the other populations.
Kruskal-Wallis Test
Rank Correlation
• A correlation measure of the association between two variables based on rank-
ordered data.
• The Spearman rank-correlation coefficient has been developed for this purpose.
Rank Correlation
• At this point, we may want to use the sample
rank correlation rs to make an inference
about the population rank correlation
coefficient ρs.

: ρs = 0
: ρs ≠ 0
Rank Correlation
Thank You

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