CHAPTER 15
NONPARAMETRIC
METHODS
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
THE SIGN TEST
Tests About Categorical Data
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
THE SIGN TEST
Definition
The sign test is used to make hypothesis
tests about preferences, a single median,
and the median of paired differences for
two dependent populations. We use only
plus and minus signs to perform these
tests.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
(a) Tests About Categorical Data
Data that are divided into different
categories for identification purposes are
called categorical data
The Small-Sample Case
When we apply the sign test for
categorical data, if the sample size is 25
or less (i.e., n ≤ 25), we consider it a
small sample.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 15-1
The Top Taste Water Company produces
and distributes Top Taste bottled water.
The company wants to determine whether
customers have a higher preference for its
bottled water than for its main competitor,
Spring Hill bottled water.
The Top Taste Water Company hired a
statistician to conduct this study. The
statistician selected a random sample of 10
people and asked each of them to taste one
sample of each of the two brands of water.
Example 15-1
The customers did not know the brand of
each water sample. Also, the order in
which each person tasted the two brands
of water was determined randomly. Each
person was asked to indicate which of the
two samples of water he or she preferred.
The following table shows the preferences
of these 10 individuals.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 15-1
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 15-1
Based on these results, can the statistician
conclude that people prefer one brand of
bottled water over the other? Use the
significance level of 5%.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 15-1: Solution
Step 1:
H0: p = .50 (People do not prefer either of
the two brands of water)
H1: p ≠ .50 (People prefer one brand of
water over the other)
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 15-1: Solution
Step 2. Distribution:
Binomial
Note: We drop the members who do not
indicate a preference and then compare the
preferences of the remaining members
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 15-1: Solution
There are three outcomes for each
person:
1) Prefers Top Taste water
2) Prefers Spring Hill water
3) Has no preference
We are to compare the two outcomes
with preferences and determine whether
more people belong to one of these two
outcomes than to the other
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 15-1: Solution
Step 3:Critical value and regions
True sample size n = 9
α = .05 and the test is two-tailed
From Sign Table VIII,
for n = 9 and α = .05, the critical values of
X are 1 and 8
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Figure 15.1
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Critical Value(s) of X
In a sign test of a small sample, the
critical value of X is obtained from Table
VIII. If the test is two-tailed, we read
both the lower the upper critical values
from that table. However, we read only
the lower critical value if the test is left-
tailed, and only the upper critical value if
the test is right-tailed. Also note that
which column we use to obtain this critical
value depends on the given significance
level and on whether the test is two-tailed
or one-tailed.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Table 15.1
Step 4: Let X be the number of people in
the sample of 9 who prefer Top Taste
bottled water
X is called the test statistic
Observed Value of X
Theobserved value of X is given by the
number of signs that belong to the category
whose proportion we are testing for.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 15-1: Solution
Step 5:
The observed value of X = 6
It falls in the non-rejection region
Therefore, we fail to reject H0
Step 6: Conclusion:
Hence, we conclude that our sample does
not indicate that people prefer either of
these two brands of bottled water over the
other
THE WILCOXON SIGNED-RANK TEST FOR
TWO DEPENDENT SAMPLES
The Wilcoxon signed-rank test for two
dependent (paired) samples is used to
test whether or not the two populations
from which these samples are drawn are
identical. We can also test the alternative
hypothesis that one population distribution
lies to the left or to the right of the other.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
THE WILCOXON SIGNED-RANK TEST FOR
TWO DEPENDENT SAMPLES
The Small-Sample Case
If the sample size is 15 or smaller, we find
the critical value of the test statistic, T,
from Table IX which gives the critical
value of T for the Wilcoxon signed-rank
test. However, when n > 15, we use the
normal distribution to perform the test.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 15-7
A private agency claims that the crash
course it offers significantly increases the
writing speed of secretaries. The following
table gives the writing speeds of eight
secretaries before and after they attended
this course.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 15-7
Using the 2.5% significance level, can you
conclude that attending this course
increases the writing speed of secretaries?
Use the Wilcoxon signed-rank test.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 15-7: Solution
Step 1:
H0: MA = MB (The crash course does not
increase the writing speed of secretaries)
H1: MA > MB (The crash course does
increase the writing speed of secretaries)
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 15-7: Solution
Step 2: Distribution:
Unknown
Example 15-7: Solution
Step 3. Critical value and regions:
α = .025
n=7
Note that for one pair of data, both values are
the same, 75. We drop such cases when
determining the sample size for the test.
The test is right-tailed.
From Table IX, the critical value of T = 2
Figure 15.7
Decision Rule
For the Wilcoxon signed-rank test for small
samples (n ≤ 15), the critical value of T is
obtained from Table IX. Note that in the
Wilcoxon signed-rank test, the decision rule
is to reject the null hypothesis if the
observed value of T is less than or equal to
the critical value of T. This rule is true for a
two-tailed, a right-tailed, or a left-tailed
test.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 15-7: Solution
Step 4: Test statistic
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Observed Value of the Test Statistic T
I. If the test is two-tailed with the
alternative hypothesis that the two
distributions are not the same, then the
observed value of T is given by the
smaller of the two sums, the sum of the
positive ranks and the sum of the
absolute values of the negative ranks.
We will reject H0 if the observed value of
T is less than or equal to the critical
value of T.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Observed Value of the Test Statistic T
II. If the test is right-tailed with the
alternative hypothesis that the
distribution of after values is to the right
of the distribution of before values, then
the observed value of T is given by the
sum of the values of the positive ranks.
We will reject H0 if the observed value of
T is less than or equal to the critical
value of T.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Observed Value of the Test Statistic T
III. If the test is left-tailed with the
alternative hypothesis that the
distribution of after values is to the left
of the distribution of before values, then
the observed value of T is given by the
sum of the absolute values of the
negative ranks. We will reject H0 if the
observed value of T is less than or equal
to the critical value of T.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Observed Value of the Test Statistic T
Remember, for the above to be true, the
paired difference is defined as the before
value minus the after value. In other
words, the differences are obtained by
subtracting the after values from the
before values.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 15-7: Solution
Step 4:
Observed value of T
= sum of the positive ranks = 3
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 15-7: Solution
Step 5. Decision:
Whether the test is two-tailed, left-tailed, or
right-tailed, we will reject the null hypothesis if
‘Observed value of T ≤ Critical value of T’
Hence, we do not reject H0.
Step 6. Conclusion:
We conclude that the crash course does not seem
to increase the writing speed of secretaries.
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