Topic 14 16

9 Correlation and Regression
Elementary Statistics
Accidents Larson Farber
60
50
40
30
20
10
0
0 2 4 6 8 10 12 14 16 18 20
Ch. 9 Larson/Farber
Hours of Training 1
Section 9.1
Correlation
Correlation
A relationship between two variables.
Explanatory Response
(Independent)Variable (Dependent)Variable
x y
Hours of Training Number of Accidents
Shoe Size Height
Cigarettes smoked per day Lung Capacity
Score on SAT Grade Point Average
Height IQ
What type of relationship exists between the two variables
and is the correlation significant?
Ch. 9 Larson/Farber 3
Scatter Plots and Types of Correlation
x = hours of training
y = number of accidents
Accidents
60
50
40
30
20
10
0 2 4 6 8 10 12 14 16 18 20
Hours of Training
Negative Correlation as x increases, y decreases
x = SAT score
GPA
4.00
y = GPA
3.75
3.50
3.25
3.00
2.75
2.50
2.25
2.00
1.75
1.50
300 350 400 450 500 550 600 650 700 750 800
Math SAT
Positive Correlation as x increases y increases

x = height y = IQ
IQ
160
150
140
130
120
110
100
90
80
60 64 68 72 76 80
Height
No linear correlation
Correlation Coefficient
A measure of the strength and direction of a linear relationship
between two variables
nxy − xy
r=
nx 2 − (x ) ny 2 − (y ) 2
2
The range of r is from -1 to 1.
-1 0 1
If r is close to -1 If r is close to If r is close to 1
there is a strong 0 there is no there is a strong
negative linear positive
correlation correlation correlation
x Application
Absences Grade
x y
8 78
2 92
Final
5 90
Grade
95 12 58
90
85
80
15 43
75
70
9 74
65
60 6 81
55
50
45
40 Absences
0 2 4 6 8 10 12 14 16
x
Computation of r
x y xy x2 y2
1 8 78 624 64 6084
2 2 92 184 4 8464
3 5 90 450 25 8100
4 12 58 696 144 3364
5 15 43 645 225 1849
6 9 74 666 81 5476
7 6 81 486 36 6561
57 516 3751 579 39898
nxy − xy 7(579) − ( 57 ) 7(39898) − (516)2
r= =
2
nx − (x ) ny − (y ) 7(3751) − (57)(516)

2 2 2 2
− 3155
r=
804 13030 = - 0.975
Hypothesis Test for Significance
r is the correlation coefficient for the sample. The
correlation coefficient for the population is  (rho).
For a two tail test for significance:
H 0 :  = 0 (The correlation is not significant)
H a :   0 (The correlation is significant)
For left-tail and right tail to test H0 :   0 H0 :   0
negative or positive significance:
Ha :   0 Ha :   0
The sampling distribution for r is a t-distribution with n-2 d.f.

r −0 r
Standardized test t = =
statistic r 1− r 2
n−2
Test of Significance
You found the correlation between the number of times absent and a
final grade r = - 0.975. There were seven pairs of data.Test the
significance of this correlation. Use  = 0.01.
1. Write the null and alternative hypothesis

H 0 :  = 0 (The correlation is not significant)
H a :   0 (The correlation is significant)
2. State the level of significance
 = 0.01
3. Identify the sampling distribution
A t-distribution with 5 degrees of freedom.
Rejection Regions
t Critical Values t0

-4.032 0 4.032
4. Find the critical 5. Find the

value rejection region
6. Find the test statistic

r −0.975 −0.975 −0.975 −0.975
t= = = = = = −9.811
1− r2 1 − (−0.975) 2 .049375 .009875 .09937
n−2 7−2 5
t
-4.032 0
-4.032
7. Make your decision

t = - 9.811 falls in the rejection region. Reject the null hypothesis.
8. Interpret your decision

There is a significant correlation between the number of times
absent and final grades.
Section 9.2
Linear Regression
The Line of Regression
Once you know there is a significant linear correlation, you
can write an equation describing the relationship between
the x and y variables. This equation is called the line of
regression or least squares line.
The equation of a line may be written as y = mx + b
where m is the slope of the line and b is the y-intercept
The line of regression is: yˆ = mx + b
The slope m is nxy − xy
m=
nx 2 − (x) 2
The y-intercept is
b = y − mx
(xi,yi) = a data point
ˆ i ) = a point on the line with same x-value
( xi , y
d i = yi − y
ˆ i Called a residual
revenue
260
250 (xi,yi)
240 di
230 ( xi , yˆ i )
220
210
d
200 2 is a minimum
190
180
1.5 2.0 2.5 3.0
Ad $
x y xy x2 Write the equation of the
1 8 78 624 64 line of regression with
2 2 92 184 4 x = number of absences
3 5 90 450 25 and y = final grade.
4 12 58 696 144
5 15 43 645 225
6 9 74 666 81 Calculate m and b
7 6 81 486 36
57 516 3751 579
nxy − xy 7(3751) − (57)(516)

m= = = −3.924
nx − (x )
2 2
7(579) − (57) 2
b = y − mx = 73.714 − ( −3.924)(8.143) = 105.667

The line of regression is: yˆ = −3.924 x + 105 .667
The Line of Regression
m = -3.924 and b = 105.667
The line of regression is: yˆ = −3.924 x + 105 .667
Final
Grade
95
90
85
80
75
70
65 ( x, y )
60
55
50
45
40
0 2 4 6 8 10 12 14 16
x
Absences
Note that the point ( x, y ) = (8.143, 73.714) is on the line. 18
Ch. 9 Larson/Farber
Predicting y values
The regression line can be used to predict values of y for values of
x falling within the range of the data.
The regression equation for number of times absent and final grade is:
yˆ = −3.924 x + 105 .667
Use this equation to predict the expected grade for a student with
(a) 3 absences (b) 12 absences
(a) yˆ = −3.924 (3) + 105 .667 = 93 .895

(b) yˆ = −3.924 (12 ) + 105 .667 = 58 .579
Section 9.3
Measures of
Regression and
Correlation
The Coefficient of Determination
The coefficient of determination, r2 is the ratio of explained
variation in y to the total variation in y.
Explained variation
r =
2
Total variation
The correlation coefficient of number of times absent and final
grade is r = - 0.975. The coefficient of determination is r2 = (-
0.975)2 = 0.9506.
Interpretation: About 95% of the variation in final grades can be
explained by the number of times a student is absent. The other
5% is unexplained and can be due to sampling error or other
variables such as intelligence, amount of time studied etc.
The Standard Error of Estimate
The Standard Error of Estimate se is the standard deviation
of the observed yi values about the predicted ŷvalue.
( yi − yˆ i ) 2
se =
n−2
The Standard Error of Estimate
x y ŷ ( y − yˆ ) 2 ( yi − yˆ i ) 2
se =
1 8 78 74.275 13.8756 n−2
2 2 92 97.819 33.8608
3 5 90 86.047 15.6262 92.767
4 12 58 58.579 0.3352 se = 5
5 15 43 46.807 14.4932
6 9 74 70.351 13.3152
7 6 81 82.123 1.2611
92.767
Calculate yˆ = −3.924 x + 105 .667 for each x. = 4.307
Prediction Intervals
Given a specific linear regression equation and x0 a specific value of x, a
c-prediction interval for y is:
ˆ −E  y  y
y ˆ +E
where 1 n( x0 − x ) 2
E = tc se 1+ +
n nx 2 − (x) 2
The point estimate is ŷ

and E is the maximum error of estimate.
Use a t-distribution with n-2 degrees of freedom.
Application
Construct a 90% confidence interval for a final grade when a student
has been absent 6 times.
1. Find the point estimate: yˆ = −3.924 x + 105.667

= −3.924(6) + 105.667
= 82.123
The point (6, 82.123) is the point on the regression line with x-
coordinate of 6.
Application
Construct a 90% confidence interval for a final grade when a
student has been absent 6 times.
1 n( x0 − x ) 2
2. Find E E = t c se 1 + +
n n x 2 − ( x ) 2
1 7(6 − 8.14) 2
= 2.015(4.307) 1 + +
7 7(579) − (57) 2
= 2.015(4.307) 1.18273 = 9.438
At the 90% level of confidence, the maximum error

of estimate is 9.438
Application
Construct a 90% confidence interval for a final grade when a
student has been absent 6 times.
3. Find the endpoints
yˆ − E = 82 .123 − 9.438 = 72 .685
yˆ + E = 82 .123 + 9.438 = 91 .561
72 .685  y  91 .561
When x = 6, the 90% confidence
interval is from 72.685 to 91.586
Minitab Output
Regression Analysis
The regression equation is

y = 106 - 3.92 x
Predictor Coef StDev T P

Constant 105.668 3.655 28.91 0.000
x -3.9241 0.4019 -9.76 0.000
S = 4.307 R-Sq = 95.0% R-Sq(adj) = 94.0%
Section 9.4
Multiple Regression
More Explanatory Variables
absence IQ Grade
8 115 78
2 135 92
5 126 90
12 110 58
15 105 43
9 120 74
6 125 81
Minitab Output
Regression Analysis

Grade = 52.7 - 2.65 absence + 0.357 IQ
Predictor Coef StDev T P

Constant 52.72 86.11 0.61 0.573
absence -2.652 2.111 -1.26 0.277
IQ 0.3570 0.5800 0.62 0.571
S = 4.603 R-Sq = 95.4% R-Sq(adj) = 93.2%
Interpretation
Grade = 52.7 - 2.65 absence + 0.357 IQ
When other variables are 0, the grade is 52.7.
If IQ is held constant, each time there is one more absence, the

predicted grade will decrease by 2.65 points
If number of absences is held constant, and IQ is increased by

One point the predicted grade will increase by .357 points.
Predicting the Response Variable

Grade = 52.7 - 2.65 absence + 0.357 IQ
Use the regression equation to predict a grade when a

Student is absent 5 times and has an IQ of 125.
Grade = 52.7 - 2.65 absence + 0.357 IQ
Grade = 52.7 – 2.65(5) + 0.357(125) = 80.075 (about 80)
Use the regression equation to predict a grade when a
Student is absent 9 times and has an IQ of 120.
Grade = 52.7 - 2.65 absence + 0.357 IQ
Grade = 52.7 – 2.65(9) + 0.357(120) = 71.69 (about 72)
Chi- Square Tests and the F-
Distribution
10
Larson Farber
Ch. 9 Larson/Farber
Section 10.1
Goodness of Fit
Chi-Square Distributions
Several important statistical tests use a probability
distribution known as chi square, denoted  ².
 2 for 1 or 2 d.f.  2 for 3 or more d.f.
0 2 0 2
 ² is a family of distributions. The graph of the  ² distribution
depends on the number of degrees of freedom (number of free
choices) in a statistical experiment.
The  ² distributions are skewed right and are not symmetric.
The value of  2 is greater than or equal to 0.
Ch. 9 Larson/Farber
Multinomial Experiments
A multinomial experiment is a probability

experiment in which there are a fixed number of
independent trials and there are more than two
possible outcomes for each trial.
• The probability for each outcome is fixed
• The sum of the probabilities of all possible outcomes
is one.
A chi-square goodness-of-fit test is used to test

whether a frequency distribution fits a specific
distribution.
Ch. 9 Larson/Farber
Chi-Square Test for Goodness -of -Fit
Ex: A social service organization claims 50% of all marriages

are the first marriage for both bride and groom, 12% are first
for the bride only, 14% for the groom only and 24% a
remarriage for both.
First Marriage %
Bride and Groom 50
Bride only 12
Groom only 14
Neither 24
H0: The distribution of first time marriages is 50% for both bride
and groom, 12% for the bride only, 14% for the groom only.
24% are remarriages for both.
H1: The distribution of first time marriages differs from the
claimed distribution.
Ch. 9 Larson/Farber
Goodness-of -Fit Test
Observed frequency, O is the frequency of the category
found in the sample.
Expected frequency, E is the calculated frequency for
the category using the specified distribution. Ei=npi
In a survey of 103 married couples, find the E = expected

number in each category.
First Marriage % E = np
Bride and Groom 50 103(.50) = 51.50
Bride only 12 103(.12) = 12.36
Groom only 14 103(.14) = 14.42
Neither 24 103(.24) = 24.72
Ch. 9 Larson/Farber
Chi Square Test
If the observed frequencies are obtained from a

random sample and each expected frequency is at
least 5, the sampling distribution for the goodness-of-
fit test is a chi-square distribution with k-1 degrees of
freedom. (where k = the number of categories)
The test statistic is:
(O − E ) 2
2 =
E
O = observed frequency in each category
E = expected frequency in each category
Ch. 9 Larson/Farber
A social service organization claims 50% of all marriages are the first
marriage for both bride and groom, 12% are first for the bride only, 14%
for the groom only and 24% a remarriage for both. The results of a study
of 103 randomly selected married couples are listed in the table. Test the
distribution claimed by the agency. Use  = 0.01
First Marriage f
Bride and Groom 55
Bride only 12
Groom only 12
Neither 24
H0: The distribution of first time marriages is 50% for both bride and
groom, 12% for the bride only, 14% for the groom only. 24% are
remarriages for both.
Ha: The distribution of first time marriages differs from the claimed
distribution.
2. State the level of significance  = 0.01
Ch. 9 Larson/Farber
3. Determine the sampling distribution
A chi-square distribution with 4 - 1 = 3 d.f. 4. Find the critical value
0 11.34 2 5. Find the rejection region
6. Find the test statistic (O − E ) 2

2 = 
E
% O E (O-E)2 (O - E) 2/E
Bride and groom 50 55 51.5 12.25 0.2379
Bride only 12 12 12.36 0.1296 0.0105
Groom only 14 12 14.42 5.8564 0.4061
Neither 24 24 24.72 0.5184 0.0210
Total 100 103 103 0.6755
Ch. 9 Larson/Farber
 2 = 0.6755
0 11.34 2
The test statistic 0.6755 does not fall in the rejection

region, so fail to reject H0.
The distribution fits the specified distribution for

first time marriages.
Ch. 9 Larson/Farber
Section 10.2
Independence
Test for Independence
A chi-square test may be used to determine whether two

variables (i.e. gender and job performance) are independent.
Two variables are independent if the occurrence of one of the
variables does not affect the occurrence of the other.
The following contingency table reflects the gender
and job performance evaluation of 220 accountants.
Low Average Superior Total

Male 22 81 9 112
Female 14 75 19 108
Total 36 156 28 220
Ch. 9 Larson/Farber
Expected Values
Assuming the variables are independent then the expected
value of each cell is: (total in row)(total in column)
Er ,c =
total in sample
E1,1 = (112)(36)/220 =18.33 E1,2 = (112)(156)/220 =79.42
All other expected values can be found by subtracting
from the total of the row or the column.

Male 18.33 79.42 14.25 112
Female 17.67 76.58 13.75 108
Total 36 156 28 220
Ch. 9 Larson/Farber
Sampling Distribution
The sampling distribution is a 2 distribution with

degrees of freedom equal to:
(Number of rows – 1) (Number of columns – 1)
Example: Find the sampling distribution for a test of

independence that has a contingency table of 4 rows and
3 columns.
The sampling distribution is a 2 distribution with

( 4 – 1) (3 – 1) = 3*2 = 6 d.f.
Ch. 9 Larson/Farber
Application
The following table reflects the gender and job performance
evaluation of 220 accountants. Test the claim that gender and
job performance are independent. Use  = 0.05

Male 22 81 9 112
Female 14 75 19 108
Total 36 156 28 220
H0: Gender and job performance are independent.
Ha: Gender and job performance are not independent.
2. State the level of significance  = 0.05
Ch. 9 Larson/Farber
Since there are 2 rows and 3 columns, the sampling distribution is a

chi-square distribution with (2-1)*(3-1) = 2 d.f.
4. Find the critical value
2 5. Find the rejection region

0 5.99
(O − E ) 2
2 = 
E
Ch. 9 Larson/Farber
Chi-Square Test
(O − E ) 2
 =
2
E
O E (O-E)2 (O-E)2/E
22 18.33 13.49 0.74
81 79.42 2.50 0.03
9 14.25 27.61 1.94
14 17.67 13.49 0.76
75 76.58 2.50 0.03
19 13.75 27.61 2.01
220 220.00 5.51
 = 5.512
Ch. 9 Larson/Farber
5.99  2
0
The test statistic, 5.51 does not fall in the

rejection region, so fail to reject H0
Gender and job evaluation are independent
variables. Do not hire accountants based on their
gender, since gender does not influence job
performance levels.
Ch. 9 Larson/Farber
Section 10.3
Comparing Two
Variances
Two Sample Test for Variances
To compare population variances, 12 and  2 2 , use the F-distribution.
Let s12 and s22 represent the sample variances of two different populations.
If both populations are normal and the population variances,
 12 and  2 2 , are equal, then the sampling distribution
2
is called an F-distribution. s1
s12 always represents the F = 2
s2
larger of the two variances.
0.8
0.7
0.6
d.f.N = 8
0.5 d.f.D =20
0.4
0.3
0.2
0.1
0.0 0 1 2 3 4 5
Ch. 9 Larson/Farber
F-Test for Variances
To test whether variances of two normally distributed

populations are equal, randomly select a sample from each
population.
Let s12 and s22 represent the sample variances where s12  s22.
The test statistic is:
s12
The sampling distribution is an F distribution with F = 2
numerator d.f.= n1-1 and denominator d.f. = n2-1. s 2
In F-tests for equal variances, only use the right tail critical
value. For a right tailed test, use the critical value
corresponding to the one in the table for the given .
For a two tail test, use the right hand critical value
corresponding to  2 .
Ch. 9 Larson/Farber
Application
An engineer wants to perform a t-test to see if the mean gas
consumption of Car A is lower than that for Car B. A random sample of
gas consumption of 16 Car A’s has a standard deviation of 4.5. A
random sample of the gas consumption of 22 Car B’s has a standard
deviation 4.2. Should the engineer use the t-test with equal variances
or the one for unequal variances? Use = 0.05.
Since the sample variance for
H0:  12 =  22
Car A is larger than that for Car
Ha:  12  22 B, use s12 to represent the
2. State the level of significance sample variance for car A.
= 0.05
Ch. 9 Larson/Farber
An F distribution with d.f.N = 15, d.f.D =21
0.8
0.7
0.6
0.5
0.4 5. Find the rejection region
0.3
0.2
0.1 0.025
0.0 0 1 2 3 4 5
2.53
6. Find the test statistic s12 4.52

F= 2 = 2
= 1.148
s2 4.2
Ch. 9 Larson/Farber
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1 0.025
0.0 0 1 2 2.53 3 4 5

Since F= 1.148 does not fall in the rejection region, fail to reject
the null hypothesis.

There is not enough evidence to reject the claim that the
variances are equal. In performing a t-test for the means of the
two populations use the test for equal variances.
Ch. 9 Larson/Farber
Section 10.4
Analysis of Variance
ANOVA
One-way analysis of variance (ANOVA) is a hypothesis testing

technique that is used to compare means from three or more populations.
H0: 1 = 2 = 3 =  = k (all population means are equal)
Ha: At least one of the means is different from the others.
The variance is calculated in two MS B
different ways and the ratio of the F=
two values is formed.
MSW
1. MSB, Mean Square Between, the variance between samples,
measures the differences related to the treatment given to each
sample.
2. MSW Mean Square Within, the variance within samples,
measures the differences related to entries within the same sample.
The variance within samples is due to sampling error.
Ch. 9 Larson/Farber
Mean Square Between
Each group is given a different “treatment”. The variation from the
grand mean (mean of all values in all groups) is measured. The
treatment (or factor) is the variable that distinguishes members of
one sample from another.
First calculate SSB and then divide by k-1, the degrees of
freedom. (k = the number of treatments or factors.)
(
SS B = ni xi − x ) 2
( )
2
SS B ni xi − x
MS B = =
k −1 k −1
Ch. 9 Larson/Farber
Mean Square Within
Calculate SSW and divide by N-k, the degrees of freedom
SSW = (ni − 1)si2

SSW (ni − 1)s 2
MSW = = i
N −k N −k
•If MSB is close in value to MSW the variation is not attributed to
different effects the different treatments have on the variable. The
ratio of the two measures (F-ratio) is close to 1.
•If MSB is significantly greater than MSW the variation is

probably due to differences in the treatments or factors and the F-
ratio will differ significantly from 1.
Ch. 9 Larson/Farber
The table shows the annual amount spent on reading (in $) for a random sample
of American consumers from four regions. At  = 0.10, can you conclude that
the mean annual amounts spent are different?
Northeast Midwest South West
308 246 103 223
58 169 143 184
141 246 164 221
109 158 119 269
220 167 99 199
144 76 214 171
316 108 204
H0: 1 = 2 = 3 = 4 (all population means are equal)
Ha: At least one of the means is different from the others.
Ch. 9 Larson/Farber
= 0.10
An F distribution with d.f.N = 3, d.f.D =23

0.8
0.7
0.6
0.5
0.4 5. Find the rejection region
0.3
0.2
0.1 0.10
0.0 0 1 2 3 4 5
2.34
Ch. 9 Larson/Farber
6. Find the test statistic MS B
F=
MSW
Northeast Midwest South West
308 246 103 223
58 169 143 184
141 246 164 221
109 158 119 269
220 167 99 199
144 76 214 171
316 108 204
Calculate the mean and variance for each sample
x = 185.14 177.00 135.71 210.14
s 2 = 9838.66 4050.05 1020.80
1741.39
4779
Calculate x the mean of all values. x= = 177
27
Ch. 9 Larson/Farber
( )2
SS B = ni xi − x
mean n (x − x)
i
2
(
ni xi − x )
2
1 185.14 7 66.26 463.8

2 177.00 6 0.00 0.0
3 135.71 7 1704.86 11934.0
4 210.14 7 1098.26 7687.8
20086
SS B 20086
MS B = = = 6695.33
k −1 3
Ch. 9 Larson/Farber
SSW = (ni − 1)s 2
i
n s2 (ni − 1)si2
1 7 9838.66 59031.9
2 6 4050.05 20250.2
3 7 1741.39 10448.4
4 7 1020.80 6124.8
95855
95855
MSW = = 4167.61
23 6955.33
F= = 1.669
4167.61
Ch. 9 Larson/Farber
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1 0.10
0.0 0 1 2 3 4 5
2.53
Since F= 1.669 does not fall in the rejection region, fail to reject
the null hypothesis.
There is not enough evidence to support the claim that the
means are not all equal. Expenses for reading are the same for
all four regions.
Ch. 9 Larson/Farber
Minitab Output
One-way Analysis of Variance
Source DF SS MS F P
Factor 3 20085 6695 1.61 0.215
Error 23 95857 4168
Total 26 15942
Using the P value method, fail to reject the null hypothesis

since 0.215 > 0.10. There is not enough evidence to support
that the amount spent on reading is different in different
regions.
Ch. 9 Larson/Farber
Chapter
11
Nonparametric Tests
Larson Farber
Section 11.1
The Sign Test

Nonparametric Tests
A nonparametric test is a hypothesis test that does not require any
specific conditions about the shape of the populations or the value of any
population parameters.
Tests are often called “distribution free” tests.
The Sign Test is a nonparametric test that can be used to test a
population median against a hypothesized value k.
Hypotheses
Left-tailed test: H0: median  k and Ha:median < k
or
Right-tailed test: H0: median  k and Ha: median > k
or
Two-tailed test: H0: median = k and Ha: median  k
Ch. 9 Larson/Farber
Sign Test
To use the sign test, first compare each entry in the sample to
the hypothesized median, k.
• If the entry is below the median, assign it a – sign

• If the entry is above the median, assign it a + sign
• If the entry is equal to the median, assign it a 0.
Compare the number of + and – signs. (ignore 0’s.) If the

number of + signs and the number of – signs are approximately
equal, the null hypothesis is not likely to be rejected. If they
are not approximately equal, however, it is likely that the null
hypothesis will be rejected.
Ch. 9 Larson/Farber
Sign Test
Test Statistic: When n  25 the test statistic is the smaller
number of + or - signs.
( x + 0.5) − 0.5n
When n > 25 the test statistic is: z=
n
2
For n > 25, you are testing the binomial probability that p = 0.50
Ch. 9 Larson/Farber
Application
A meteorologist claims that the daily median temperature for the
month of January in San Diego is 57 Fahrenheit. The temperatures
(in degrees Fahrenheit) for 18 randomly selected January days are
listed below. At  = 0.01, can you support the meteorologist’s claim?
58 62 55 55 53 52 52 59 55 55 60 56 57 61 58 63 63 55
H0: median = 57 and Ha: median  57
= 0.01
Binomial with p = 0.5
Ch. 9 Larson/Farber
58 62 55 55 53 52 52 59 55
55 60 56 57 61 58 63 63 55
+ + - - - - - + -
- + - 0 + + + + -
There are 8 + signs and 9 - signs. So, n = 8 + 9 = 17.
Since Ha contains the  symbol, this is a two tail test.
Ch. 9 Larson/Farber
4. Find the critical value With n = 17 use Table 8
Critical value is 2.
Reject H0 if the test

5. Find the rejection region statistic is less than or
equal to 2.
The test statistic is the smaller number of + or - signs, so

the test statistic is 8.
Ch. 9 Larson/Farber
The test statistic, 8, does not fall in the critical region. Fail to
reject the null hypothesis.
There is not enough evidence to reject the meteorologist’s
claim that the median daily temperature for January in San
Diego is 57
The sign test can also be used with paired
data (such as before and after). Find the
difference between corresponding values and
record the sign. Use the same procedure.
Ch. 9 Larson/Farber
Section 11.2
The Wilcoxon Test

Wilcoxon Signed Rank Test
The Wilcoxon signed-rank test is a nonparametric test that can be
used to determine whether two dependent samples were selected
from populations with the same distribution.
To find the test statistic ws
•Find the difference for each pair:
Sample 1 value - Sample 2 value
•Find the absolute value of the difference.
•Rank order these differences
•Affix a + or - sign to each of the rankings
•Find the sum of the positive ranks
•Find the sum of the negative ranks
•Select the smaller of the absolute values of the sums.
Ch. 9 Larson/Farber
Application
The table shows the daily headache hours suffered by 12 patients

before and after receiving a new drug for seven weeks. At  = 0.01, is
there enough evidence to conclude that the new drug helped to reduce
daily headache hours?

H0: The headache hours after using the new drug are at least
as long as before using the drug.
Ha: The new drug reduces headache hours. (Claim)
= 0.01
Ch. 9 Larson/Farber
Before After Diff abs rank Sign rank
1 2.1 2.2 -0.1 0.1 1.5 -1.5

2 3.9 2.8 1.1 1.1 5 5
3 3.8 2.5 1.3 1.3 6 6
4 2.5 2.6 -0.1 0.1 1.5 -1.5
5 2.4 1.9 0.5 0.5 3 3
6 3.6 1.8 1.8 1.8 8 8
7 3.4 2.0 1.4 1.4 7 7
8 2.4 1.6 0.8 0.8 4 4
Ch. 9 Larson/Farber
The sum of the positive ranks is 5 + 6 + 3 + 8 + 7 + 4 = 33
The sum of the negative ranks is –1.5 + (-1.5) = -3
The test statistic is the smaller of the absolute value of these

sums. ws = 3
There are 8 + and - signs, so n = 8. The critical

value is 2. Because ws = 3 is greater than the
critical value, fail to reject the null hypothesis. There
is not enough evidence to conclude the new drug
reduces headache hours.
Ch. 9 Larson/Farber
Wilcoxon Rank-Sum
The Wilcoxon rank-sum test is a nonparametric test that can
be used to determine whether two independent samples were
selected from populations having the same distribution.
Both samples must be at least 10. Then n1 represents

the size of the smaller sample and n2 the size of the
larger sample.
When the samples are the same size, it does not matter which is n1.
Ch. 9 Larson/Farber
Wilcoxon Rank-Sum
Test statistic:
Combine the data from both samples and rank it.
R = the sum of the ranks for the smaller sample.
Find the z-score for the value of R.
where R − R
z=
R
n1 (n1 + n2 + 1) n1n2 (n1 + n2 + 1)
R = R =
2 12
Ch. 9 Larson/Farber
Section 11.3
The Kruskal-Wallis
Test
The Kruskal-Wallis Test
The Kruskal-Wallis test is a nonparametric test that can be used to
determine whether three or more independent samples were selected
from populations having the same distribution.
H0: There is no difference in the population distributions.

Ha: There is a difference in the population distributions.
Combine the data and rank the values. Then separate

the data according to sample and find the sum of the
ranks for each sample.
Ri = the sum of the ranks for sample i.

Kruskal-Wallis Test
Given three or more independent samples, the test statistic H
for the Kruskal-Wallis test is
 R12 R22 Rk2 
− 3( N + 1)
12
H = 
 + ++ 
N ( N + 1)  n1 n2 nk 
where k represents the number of samples, ni is the size of

the ith sample, N is the sum of the sample sizes, and Ri is
the sum of the ranks of the ith sample.
The sampling distribution is a chi-square distribution with k - 1

degrees of freedom ( Where k = the number of samples.)
Reject the null hypothesis when H is greater than the critical number.
(always use a right tail test.)
Application
You want to compare the hourly pay rates of accountants
who work in Michigan, New York and Virginia. To do so,
you randomly select 10 accountants in each state and record
their hourly pay rate as shown below. At the .01 level, can
you conclude that the distributions of accountants’ hourly
pay rates in these three states are different?
MI(1) NY(2) VA(3)
14.24 21.18 17.02
14.06 20.94 20.63
14.85 16.26 17.47
17.47 21.03 15.54
14.83 19.95 15.38
19.01 17.54 14.9
13.08 14.89 20.48
15.94 18.88 18.5
13.48 20.06 12.8
16.94 21.81 15.57
H0 : There is no difference in the hourly pay rate in the 3 states.

Ha : There is a difference in the hourly pay in the 3 states.
2. State the level of significance  = 0.01

5. Find the rejection region

2
The sampling distribution is chi-square with d.f. = 3-1 = 2
From Table 6, the critical value is 9.210.
Ch. 9 Larson/Farber
Data
12.8
13.08
State
VA
MI
Rank
1
2
Test Statistic
13.48 MI 3
14.06 MI 4
14.24 MI 5 Michigan salaries are in ranks:
14.83 MI 6
14.85 MI 7 2, 3, 4, 5, 6, 7, 13, 15, 17.5, 22
14.89 NY 8
14.9 VA 9 The sum = 94.5
15.38 VA 10
15.54 VA 11
15.57 VA 12
15.94 MI 13 New York salaries are in ranks:
16.26 NY 14
16.94 MI 15 8, 14, 19, 21, 23, 24, 27, 28, 29, 30
17.02 VA 16
17.47 MI 17.5 The sum is 223
17.47 VA 17.5
17.54 NY 19
18.5 VA 20
18.88
19.01
NY
MI
21
22
Virginia salaries are in ranks:
19.95
20.06
NY
NY
23
24
1, 9, 10, 11, 12, 16, 17.5, 20, 25, 26
20.48
20.63
VA
VA
25
26
The sum is 147.5
20.94 NY 27
21.03 NY 28
21.18 NY 29
21.81 NY 30
Ch. 9 Larson/Farber
R1= 94.5, R2 = 223, R3 =147.5 Find the test statistic
n1 = 10, n2=10 and n3 =10, so N = 30
12  94.52 2232 147.52 
H=  + +  − 3(30 + 1) = 10.76
30(30 + 1)  10 10 10 
9.210 10.76
Make Your Decision
The test statistic, 10.76 falls in the rejection region, so
Reject the null hypothesis
Interpret your decision
There is a difference in the salaries of the 3 states.
Ch. 9 Larson/Farber
Section 11.4
Rank Correlation
Section 11.4
Rank Correlation
Statistics
Rank Correlation
The Spearman rank correlation coefficient, rs, is a measure of the
strength of the relationship between two variables. The Spearman rank
correlation coefficient is calculated using the ranks of paired sample
data entries. The formula for the Spearman rank correlation coefficient
is 6d 2
rs = 1 −
n n( 2
−1 ) .
where n is the number of paired data entries and d is the difference

between the ranks of a paired data entry.
The hypotheses:
H0:  = 0 (There is no correlation between the variables.)
Ha:   0 (There is a significant correlation between the variables.)
Rank Correlation
Seven candidates applied for a x y
nursing position. The seven
candidates were placed in rank 1 2 1
order first by x and then by y. The 2 4 4
results of the rankings are listed 3 1 3
below. Using a .05 level of 4 5 2
significance, test the claim that 5 7 6
there is a significant correlation 6 3 1
between the variables. 7 6 7
H0:  = 0 (There is no correlation between the variables.)

Ha:   0 (There is a significant correlation between the
variables.)
Application
x y d=x-y d²
1 2 1 1 1
2 4 4 0 0 Critical Value
3 1 3 -2 4 = 0 .715
4 5 2 3 9
5 7 6 1 1
6 3 1 2 4
7 6 7 -1 1
20
6d 2 6(20)
rs = 1 − = 1− = 1 − 0.357 = 0.643
n ( n − 1)
2
7(7 − 1)
2
Since the statistic 0.643 does not fall in the rejection region,
fail to reject H0 . There is not enough evidence to support the
claim that there is a significant correlation.
Ch. 9 Larson/Farber

Topic 14 16

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Topic 14 16

Uploaded by

Copyright:

Available Formats

9 Correlation and Regression

Negative Correlation as x increases, y decreases

Positive Correlation as x increases y increases

The range of r is from -1 to 1.

nx − (x ) ny − (y ) 7(3751) − (57)(516)

The sampling distribution for r is a t-distribution with n-2 d.f.

1. Write the null and alternative hypothesis

t Critical Values t0

4. Find the critical 5. Find the

6. Find the test statistic

7. Make your decision

8. Interpret your decision

nxy − xy 7(3751) − (57)(516)

b = y − mx = 73.714 − ( −3.924)(8.143) = 105.667

(a) 3 absences (b) 12 absences

(a) yˆ = −3.924 (3) + 105 .667 = 93 .895

The point estimate is ŷ

Use a t-distribution with n-2 degrees of freedom.

1. Find the point estimate: yˆ = −3.924 x + 105.667

At the 90% level of confidence, the maximum error

The regression equation is

Predictor Coef StDev T P

S = 4.307 R-Sq = 95.0% R-Sq(adj) = 94.0%

The regression equation is

Predictor Coef StDev T P

S = 4.603 R-Sq = 95.4% R-Sq(adj) = 93.2%

When other variables are 0, the grade is 52.7.

If IQ is held constant, each time there is one more absence, the

If number of absences is held constant, and IQ is increased by

The regression equation is

Use the regression equation to predict a grade when a

A multinomial experiment is a probability

A chi-square goodness-of-fit test is used to test

Ex: A social service organization claims 50% of all marriages

In a survey of 103 married couples, find the E = expected

If the observed frequencies are obtained from a

A chi-square distribution with 4 - 1 = 3 d.f. 4. Find the critical value

0 11.34 2 5. Find the rejection region

6. Find the test statistic (O − E ) 2

7. Make your decision

The test statistic 0.6755 does not fall in the rejection

The distribution fits the specified distribution for

A chi-square test may be used to determine whether two

Low Average Superior Total

Low Average Superior Total

The sampling distribution is a 2 distribution with

(Number of rows – 1) (Number of columns – 1)

Example: Find the sampling distribution for a test of

The sampling distribution is a 2 distribution with

Low Average Superior Total

Since there are 2 rows and 3 columns, the sampling distribution is a

4. Find the critical value

2 5. Find the rejection region

6. Find the test statistic

7. Make your decision

The test statistic, 5.51 does not fall in the

To test whether variances of two normally distributed

6. Find the test statistic s12 4.52

7. Make your decision

8. Interpret your decision

One-way analysis of variance (ANOVA) is a hypothesis testing

SSW = (ni − 1)si2

•If MSB is significantly greater than MSW the variation is