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Stat2

2A Statistics 2 for Economics


inference about two proportions non-parametric: Wilcoxon Rank Sum

• one population: proportion


• Hypothesis testing #5
• two populations: proportion
• Hypothesis testing #8
• non-zero difference or zero difference
• Confidence interval
• Case Calculators
• non-parametric tests
• Wilcoxon Rank Sum: independent samples
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2A one population
in the booklet
Formulas and Tables for Statistics

2
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2A one population: mean
(Statistics 1 for Economics)
𝐻𝐻1 ∶ 𝜇𝜇 > 8 rejection region: 𝑇𝑇 ≥ 𝑡𝑡𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐
population 𝑛𝑛 = 20
6 4 14 6
random sample sample

?
6 11 8 7
14 15 12 11
3 10 5 6 7
5 7 19

𝐻𝐻0 ∶ 𝜇𝜇 = 8 𝑥𝑥̅ = 8.8


𝑥𝑥̅ − 𝜇𝜇 𝑠𝑠 2 = 8.98
𝑇𝑇 = 𝑠𝑠 ~ 𝑡𝑡[df = 𝑛𝑛 − 1]
how much… μ 𝑥𝑥̅ mean
𝑛𝑛
if population normal or 𝑛𝑛 ≥ 30
how different… σ² s² variance

what percentage… p 𝑝𝑝̂ proportion


�𝟏𝟏 − 𝒙𝒙
𝒙𝒙 �𝟐𝟐 − 𝝁𝝁𝟏𝟏 − 𝝁𝝁𝟐𝟐
𝑻𝑻 =
𝒔𝒔𝟐𝟐𝟏𝟏 𝒔𝒔𝟐𝟐𝟐𝟐
+
𝒏𝒏𝟏𝟏 𝒏𝒏𝟐𝟐 3
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2A one population: variance
(Statistics 1 for Economics)
2
𝐻𝐻1 ∶ 𝜎𝜎 < 4 rejection region: 𝜒𝜒 ≤ 2 2
𝜒𝜒crit
population
6 4 14 6
random sample sample

?
6 11 8 7
14 15 12 11
3 10 5 6 7
5 7 19

𝐻𝐻0 ∶ 𝜎𝜎 2 = 4 𝑠𝑠 2 = 8.98
how much… μ 𝑥𝑥̅ mean
𝑛𝑛 − 1 𝑠𝑠 2
variance
2
how different… σ² 𝜒𝜒 = ~𝜒𝜒 2 [df = 𝑛𝑛 − 1] s²
𝜎𝜎 2
if population normal
what percentage… p 𝑝𝑝̂ proportion
𝒔𝒔𝟐𝟐𝟏𝟏
𝝈𝝈𝟐𝟐𝟏𝟏 𝒔𝒔𝟐𝟐𝟏𝟏
𝑭𝑭 = = 𝟐𝟐
𝒔𝒔𝟐𝟐𝟐𝟐 𝒔𝒔𝟐𝟐
𝝈𝝈𝟐𝟐𝟐𝟐 4
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2A one population: proportion
(Statistics 1 for Economics)
𝐻𝐻1 ∶ 𝑝𝑝 ≠ 40% rejection region: 𝑍𝑍 ≥ 𝑧𝑧𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 or 𝑍𝑍 ≤ −𝑧𝑧𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐
population
no no yes no
random sample sample

?
no no no no
no yes no no
no no no yes no
𝐻𝐻0 ∶ 𝑝𝑝 = 40% yes no no

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𝑝𝑝̂ = 20 = 20%
how much… μ 𝑥𝑥̅ mean

how different… σ² s² variance


𝑝𝑝̂ − 𝑝𝑝
𝑍𝑍 = ~ 𝑁𝑁(0, 1)
what percentage… p 𝑝𝑝 1 − 𝑝𝑝 𝑝𝑝̂ proportion
𝑛𝑛
if 𝑛𝑛 � 𝑝𝑝 ≥ 5 and 𝑛𝑛 � 1 − 𝑝𝑝 ≥ 5 �𝟏𝟏 − 𝒑𝒑
𝒑𝒑 �𝟐𝟐 − 𝒑𝒑𝟏𝟏 − 𝒑𝒑𝟐𝟐
𝒁𝒁 =
𝑛𝑛 � 𝑝𝑝 = 20 � 0.40 = 8 �𝟏𝟏 𝟏𝟏 − 𝒑𝒑
𝒑𝒑 �𝟏𝟏 �𝟐𝟐 𝟏𝟏 − 𝒑𝒑
𝒑𝒑 �𝟐𝟐
+
𝑛𝑛 � 1 − 𝑝𝑝 = 20 � 1 − 0.40 = 12 𝒏𝒏𝟏𝟏 𝒏𝒏𝟐𝟐 5
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2A one population: proportion
hypothesis test with 𝛼𝛼 = 5%

1. Conditions and assumptions 5. Sample outcome


• random sample 𝑛𝑛 = 20 4
𝑝𝑝̂ = 20 = 0.20
• nominal data
• 𝑛𝑛 � 𝑝𝑝 = 20 � 0.40 = 8 ≥ 5 𝑝𝑝̂ − 𝑝𝑝 0.20 − 0.40
• 𝑛𝑛 � 1 − 𝑝𝑝 = 20 � 1 − 0.40 = 12 ≥ 5 𝑧𝑧𝑜𝑜𝑜𝑜𝑜𝑜 = = = −1.83
𝑝𝑝 1 − 𝑝𝑝 0.40 1 − 0.40
𝑛𝑛 20
2. Hypotheses
𝐻𝐻0 ∶ 𝑝𝑝 = 40% vs 𝐻𝐻1 ∶ 𝑝𝑝 ≠ 40% 6. Confrontation and decision
𝑧𝑧𝑜𝑜𝑜𝑜𝑜𝑜 not in rejection region ⟹
3. Test statistic and its distribution do not reject H0
𝑝𝑝̂ − 𝑝𝑝
𝑍𝑍 = ~ 𝑁𝑁(0, 1)
𝑝𝑝 1 − 𝑝𝑝 7. Conclusion
𝑛𝑛 Given the significance level of 5%,
there is insufficient evidence to infer that
4. Rejection region the proportion of the students listening to
𝑍𝑍 ≥ 𝑧𝑧𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 = 𝑧𝑧0.025 = 1. 96 classical music while studying for their exams,
𝑍𝑍 ≤ −𝑧𝑧𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 = −𝑧𝑧0.025 = −1. 96 is different from 40%.
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2A nominal level of measurement
Nominal:
• smokes: yes, no
• bicycle: Gazelle, Batavus, Sparta, Giant, Cortina, Halfords, other
• city name: Amsterdam, Rotterdam, Den Haag, Utrecht
• gender: female, male, nonbinary, fluid, other, none of your business

Not nominal, but ordinal:


• opinion: disagree very much, disagree, neutral, agree, agree very much
• size: XS, S, M, L, XL, XXL

Nominal and ordinal can be coded with numbers, but still not quantitative:
• smokes: yes = 1, no = 0
• employed: full-time = 1, part-time = 2, none = 3 7
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2A Statistics 2 for Economics
2A inference about two proportions 2A non-parametric: Wilcoxon Rank Sum

• one population: proportion


• Hypothesis testing
• two populations: proportion
• Hypothesis testing
• non-zero difference or zero difference
• Confidence interval
• Case Calculators
• non-parametric tests
• Wilcoxon Rank Sum: independent samples
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2A two populations: proportion
Is the proportion of smokers population 1 random sample
among workers (population 2)
sample 1

?
at least 10% larger than the
one population
proportion of smokers among 𝑝𝑝̂ − 𝑝𝑝
students (population 1)? 𝑧𝑧 = ~ 𝑁𝑁(0, 1)
𝑝𝑝 1 − 𝑝𝑝
𝑛𝑛
𝑝𝑝2 > 𝑝𝑝1 + 0.10 if 𝑛𝑛 � 𝑝𝑝 ≥ 5 and 𝑛𝑛 � 1 − 𝑝𝑝 ≥ 5
𝑥𝑥
𝑝𝑝̂1 = 𝑛𝑛1
p1 1
𝑝𝑝1 + 0.10 < 𝑝𝑝2 𝑝𝑝̂1 − 𝑝𝑝̂ 2 − 𝑝𝑝1 − 𝑝𝑝2
𝑧𝑧 = ~ 𝑁𝑁(0, 1)
𝑝𝑝1 − 𝑝𝑝2 𝑝𝑝̂1 1 − 𝑝𝑝̂1 𝑝𝑝̂ 1 − 𝑝𝑝̂ 2 𝑝𝑝̂1 − 𝑝𝑝̂ 2
𝑝𝑝1 < 𝑝𝑝2 − 0.10 + 2
𝑛𝑛1 𝑛𝑛2
p2 if 𝑛𝑛1 𝑝𝑝̂1 ≥ 5 𝑛𝑛1 1 − 𝑝𝑝1̂ ≥ 5 𝑛𝑛2 𝑝𝑝̂2 ≥ 5 𝑛𝑛2 1 − 𝑝𝑝̂2 ≥ 5 𝑥𝑥
𝐻𝐻1 ∶ 𝑝𝑝1 − 𝑝𝑝2 < −0.10 𝑝𝑝̂ 2 = 𝑛𝑛2
2
random sample

?
𝐻𝐻0 ∶ 𝑝𝑝1 − 𝑝𝑝2 = −0.10

sample 2
population 2
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2A two populations: proportion
hypothesis test with 𝛼𝛼 = 5%

1. Conditions and assumptions 5. Sample outcome


• independent random samples 𝑛𝑛1 = 32 𝑝𝑝̂1 = 0.30 𝑛𝑛2 = 36 𝑝𝑝̂ 2 = 0.45
• nominal
• 𝑛𝑛1 𝑝𝑝̂1 = 9.6 ≥ 5 𝑛𝑛1 1 − 𝑝𝑝̂1 = 22.4 ≥ 5 0.30 − 0.45 − −0.10 −0.05
• 𝑛𝑛2 𝑝𝑝̂ 2 = 16.2 ≥ 5 𝑛𝑛2 1 − 𝑝𝑝̂ 2 = 19.8 ≥ 5 𝑧𝑧𝑜𝑜𝑜𝑜𝑜𝑜 = = = −0.43
0.30 1 − 0.30 0.45 1 − 0.45 0.11592
+
32 36
2. Hypotheses
𝐻𝐻0 ∶ 𝑝𝑝1 − 𝑝𝑝2 = −0.10 6. Confrontation and decision
𝐻𝐻1 ∶ 𝑝𝑝1 − 𝑝𝑝2 < −0.10 𝑧𝑧𝑜𝑜𝑜𝑜𝑜𝑜 not in rejection region ⟹
do not reject H0
3. Test statistic and its distribution
𝑝𝑝̂1 − 𝑝𝑝̂ 2 − 𝑝𝑝1 − 𝑝𝑝2 7. Conclusion
𝑍𝑍 = ~ 𝑁𝑁(0, 1)
𝑝𝑝̂1 1 − 𝑝𝑝̂1 𝑝𝑝̂ 2 1 − 𝑝𝑝̂ 2 Given the significance level of 5%,
+ there is insufficient evidence to infer that
𝑛𝑛
1 2𝑛𝑛
the proportion of smokers among workers is at least 10% larger
4. Rejection region than the proportion of smokers among students.
𝑍𝑍 ≤ 𝑧𝑧𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 = 𝑧𝑧0.05 = −1. 645
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2A two populations: proportion
general case specific case
𝐻𝐻0 ∶ 𝑝𝑝1 − 𝑝𝑝2 = 𝐷𝐷 𝐻𝐻0 ∶ 𝑝𝑝1 − 𝑝𝑝2 = 0
where 𝐷𝐷 ≠ 0

𝑝𝑝̂1 − 𝑝𝑝̂ 2 − 𝑝𝑝1 − 𝑝𝑝2 𝑝𝑝̂1 − 𝑝𝑝̂ 2 − 𝑝𝑝1 − 𝑝𝑝2


𝑍𝑍 = 𝑍𝑍 =
𝑝𝑝̂1 1 − 𝑝𝑝̂1 𝑝𝑝̂ 1 − 𝑝𝑝̂ 2 1 1
+ 2 𝑝𝑝̂ 1 − 𝑝𝑝̂ +
𝑛𝑛1 𝑛𝑛2
𝑛𝑛1 𝑛𝑛2
𝑥𝑥1 𝑥𝑥2 𝑛𝑛1 𝑝𝑝�1 +𝑛𝑛2 𝑝𝑝�2 𝑥𝑥1 +𝑥𝑥2
where 𝑝𝑝̂1 = and 𝑝𝑝̂2 = where 𝑝𝑝̂ = =
𝑛𝑛1 𝑛𝑛2 𝑛𝑛1 +𝑛𝑛2 𝑛𝑛1 +𝑛𝑛2
(= combined sample proportion)

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2A example Asperin
Can Aspirin help to prevent heart attacks?

22 000 participants:
𝑛𝑛1 = 11 000 half of the participants take Aspirin daily
𝑛𝑛2 = 11 000
the other half takes a placebo

observed in a three years period: heart attacks


𝑥𝑥1 = 104 104 of those who took Aspirin
𝑥𝑥2 = 189 189 of those who took placebo

𝛼𝛼 = 0.01
Hypothesis test with significance level 0.01
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2A example Asperin
hypothesis test with 𝛼𝛼 = 1%

1. Conditions and assumptions 5. Sample outcome


• independent random samples 𝑛𝑛1 = 11 000 = 𝑛𝑛2 𝑝𝑝̂1 = 11104
000
= 0.945% 𝑝𝑝̂ 2 = 11189
000
= 1.718%
• nominal data
• 𝑛𝑛1 𝑝𝑝̂1 = 104 ≥ 5𝑛𝑛1 𝑛𝑛1 1 − 𝑝𝑝̂1 ≥ 5 104 + 189
• 𝑛𝑛2 𝑝𝑝̂ 2 = 189 ≥ 5𝑛𝑛1 𝑛𝑛2 1 − 𝑝𝑝̂ 2 ≥ 5 𝑝𝑝̂ = = 1.332%
22 000

2. Hypotheses 0.00945 − 0.01718 − 0


𝐻𝐻0 ∶ 𝑝𝑝1 − 𝑝𝑝2 = 0 𝑧𝑧𝑜𝑜𝑜𝑜𝑜𝑜 = = −5.00
1 1
𝐻𝐻1 ∶ 𝑝𝑝1 − 𝑝𝑝2 < 0 0.01332 1 − 0.01332 +
11 000 11 000

3. Test statistic and its distribution 6. Confrontation and decision


𝑝𝑝̂1 − 𝑝𝑝̂ 2 − 𝑝𝑝1 − 𝑝𝑝2 𝑧𝑧𝑜𝑜𝑜𝑜𝑜𝑜 in rejection region ⟹
𝑍𝑍 = ~ 𝑁𝑁(0, 1)
1 1 reject H0
𝑝𝑝̂ 1 − 𝑝𝑝̂ +
𝑛𝑛1 𝑛𝑛2
7. Conclusion
4. Rejection region Given the significance level of 1%,
𝑍𝑍 ≤ 𝑧𝑧𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 = 𝑧𝑧0.01 = −2.33 there is sufficient evidence to infer that
Asperin helps to prevent heart attacks. 13
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2A example Asperin
Estimate the decrease of the proportion of heart attacks
95%-confidence interval

𝑝𝑝�1 1 − 𝑝𝑝�1 𝑝𝑝�2 1 − 𝑝𝑝�2


𝑝𝑝1 − 𝑝𝑝2 = 𝑝𝑝�1 − 𝑝𝑝�2 ± 𝑧𝑧𝛼𝛼 � +
2 𝑛𝑛1 𝑛𝑛2

0.00945 � 0.99055 0.0172 � 0.9828


= 0.00945 − 0.0172 ± 1.96 � +
11 000 11 000
Standard Error for difference
⟹ −0.0108 < 𝑝𝑝1 − 𝑝𝑝2 < −0.0047

The percentage of heart attacks in the population that uses Aspirin


daily is between 0.47% and 1.08% lower than in population that
doesn’t use Aspirin daily. (95% confidence)

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2A case Calculators
A factory has the choice between two methods of producing
calculators (methods 1 and 2). In a random sample of 80 calculators
made by method 1, 16 were defective, while in a random sample of
60 calculators made by method 2, 21 were defective.
a. Test, using 𝛼𝛼 = 5%, whether there is a difference between the
two methods with respect to the percentage of defective
calculators.
b. Because method 1 is more expensive than method 2,
management wants to know whether the percentage of
defectives for method 2 is more than 3%-points higher than that
for method 1. Test this using 𝛼𝛼 = 5%.
c. Determine a 90%-confidence interval for the difference in
percentages of defectives for the two methods.
(answers: see Canvas)
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2A Statistics 2 for Economics
2A inference about two proportions 2A non-parametric: Wilcoxon Rank Sum

• one population: proportion


• Hypothesis testing
• two populations: proportion
• Hypothesis testing
• non-zero difference or zero difference
• Confidence interval
• Case Calculators
• non-parametric tests
• Wilcoxon Rank Sum: independent samples
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2A ordinal level of measurement
When T-test for the comparison between two population means cannot be used:
 small samples, from populations that are not normally distributed
 ordinal data

Examples of ordinal data:


• Opinion: 1 star, 2 stars, …, 5 stars
• Race: first place, second place, third place, …
• Verbal exam grade: 1, 2, 3, …, 10
• Feelings: very unhappy, unhappy, neutral, happy, very happy

Can be coded with numbers, but still not quantitative:


Feelings: very unhappy = 1, unhappy = 2, neutral = 3, happy = 4, very happy = 5
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2A ordinal level of measurement
When T-test for the comparison between two population means cannot be used:
 small samples, from populations that are not normally distributed
 ordinal data

Examples of ordinal data:


• Opinion: 1 star, 2 stars, …, 5 stars
• Race: first place, second place, third place, …
• Verbal exam grade: 1, 2, 3, …, 10
• Feelings: very unhappy, unhappy, neutral, happy, very happy

Can be coded with numbers, but still not quantitative:


Feelings: very unhappy = 1, unhappy = 2, neutral = 3, happy = 4, very happy = 5
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2A non-parametric tests
When T-test for the comparison between two population means cannot be used:
 small samples from populations that are not normally distributed
 ordinal data

then a non-parametric test for the difference in location should be used.


 non-parametric: no reference to any population parameter
 distribution-free: no specific population distribution assumed

population
sample

?
𝑥𝑥̅ s² 𝑝𝑝̂
μ σ² p statistics
parameters 19
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2A Wilcoxon Rank Sum Test
The Wilcoxon Rank Sum Test tests the difference in location of two populations.

Hypotheses:
 𝐻𝐻0 : population 1 and population 2 have the same location
and
 𝐻𝐻1 : location of population 1 differs from location population 2 (two-sided)
 𝐻𝐻1 : location of population 1 is to the left of location population 2 (one-sided)
 𝐻𝐻1 : location of population 1 is to the right of location population 2 (one-sided)

1 2

The Wilcoxon Rank Sum Test only assumes that the populations are identical
with respect to the spread and the form of their distributions.
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2A Wilcoxon Rank Sum Test
1. Conditions and assumptions
 two independent random samples
 ordinal data or quantitative data from non-normal distribution

2. Hypotheses
𝐻𝐻0 : population 1 and population 2 have the same location
𝐻𝐻1 : location of pop. 1 differs from location of pop. 2 (two-sided)

3. Test statistic
𝑇𝑇 = rank sum for sample 1 = 𝑇𝑇1

how to calculate the rank sum, and why?

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2A rank sum and location
Rank the values of the two samples:
1 3 2 44 𝑇𝑇1𝑇𝑇1==1010
sample 1 8 17 13 22
sample 2 37 42 36 31
7 8 6 55 𝑇𝑇2𝑇𝑇=
2 =
2626
You can imagine that this ranking
1 2 3 4 5 6 7 8

likely from the situation where population 1 lies to the left of population 2:

1 2

The rank sum of the first sample is low: 𝑇𝑇1 = 1 + 2 + 3 + 4 = 10 < 𝑇𝑇2 = 26 22
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2A rank sum and location
Another example:
1 7 6 4.5 𝑇𝑇1 = 18.5
sample 1 11 37 35 28
sample 2 40 16 12 28
8 3 2 4.5 𝑇𝑇2 = 17.5
This ranking
4.5
1 2 3 4.5 6 7 8

might very well be from the situation where population 1 and population 2 have
(almost) the same location:
1
2

The rank sums are almost equal: 𝑇𝑇1 ≈ 𝑇𝑇2 notice 𝑛𝑛1 = 𝑛𝑛2
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2A rank sum and location
Recipe:
 Rank each observation, from 1 (lowest) to 𝑛𝑛1 + 𝑛𝑛2 (highest)
 In case of eaqual scores, take the mean of the ranks
 𝑇𝑇1 is the sum of ranks for sample 1, and 𝑇𝑇2 of sample 2.

Under 𝐻𝐻0 all ranks are equally likely in both samples.


(and in the case that 𝑛𝑛1 = 𝑛𝑛2 we expect 𝑇𝑇1 ≈ 𝑇𝑇2 )

A value for 𝑇𝑇 which is too small or too large,


can be viewed as evidence that 𝐻𝐻0 is false:

4. Rejection region
𝐿𝐿 𝑈𝑈
𝑇𝑇 ≤ 𝑇𝑇𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 ∨ 𝑇𝑇 ≥ 𝑇𝑇𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 (lower and upper)
Stat2
2A rejection region
4. Rejection region
𝐿𝐿 𝑈𝑈
𝑇𝑇 ≤ 𝑇𝑇𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 ∨ 𝑇𝑇 ≥ 𝑇𝑇𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 (lower and upper)

for example: 𝑛𝑛1 = 4 and 𝑛𝑛2 = 4 𝛼𝛼 = 10%


from Formulas and Tables for Statistics, table 7 (p.27) :
Stat2
2A rejection region
4. Rejection region
𝐿𝐿 𝑈𝑈
𝑇𝑇 ≤ 𝑇𝑇𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 ∨ 𝑇𝑇 ≥ 𝑇𝑇𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 (lower and upper)

for example: 𝑛𝑛1 = 5 and 𝑛𝑛2 = 4 𝛼𝛼 = 10%


from Formulas and Tables for Statistics, table 7 (p.27) :

𝑃𝑃 𝑇𝑇 ≤ 17 𝐻𝐻0 ) ≈ 0.05 and 𝑃𝑃 𝑇𝑇 ≥ 33 𝐻𝐻0 ) ≈ 0.05


Stat2
2A Wilcoxon Rank Sum Test
Five remarks:
 If you switch indices 1 and 2, then you should switch them everywhere:
in the test statistic 𝑇𝑇1 and for the sample sizes 𝑛𝑛1 and 𝑛𝑛2 when looking
up the limits 𝑇𝑇𝐿𝐿 and 𝑇𝑇𝑈𝑈 of the rejection region in table 7.

𝑛𝑛1 = 5 and 𝑛𝑛2 = 4 𝑛𝑛1 = 4 and 𝑛𝑛2 = 5


Stat2
2A case Razor Blades
A major manufacturer of razor blades claims that double blade razors last longer than
single blade razors. A competitor, selling single blade razors, wants to test this claim.
Two independent samples of 8 men are drawn. The first group uses the single blade
razors. The second uses the double blade razors. Every participant counts the number
of times that the blades last. The results:

single blade 10 6 3 7 13 15 5 7
double blade 8 18 10 11 16 10 6 12

a. What is the type of the data?


b. Do these data support the claim of the manufacturer? Use α=5%.
c. Why should we call the applied test ‘non-parametric’ ?
d. Why should we call the applied test ‘distribution free’?
e. Can you make suggestions to improve the experimental design?

(answers: see Canvas)


Stat2
2A Wilcoxon Rank Sum Test
Five remarks:
 If you switch indices 1 and 2, then you should switch them everywhere:
in the test statistic 𝑇𝑇1 and for the sample sizes 𝑛𝑛1 and 𝑛𝑛2 when looking
up the limits 𝑇𝑇𝐿𝐿 and 𝑇𝑇𝑈𝑈 of the rejection region in table 7.
 When 𝑛𝑛1 > 10 and 𝑛𝑛2 > 10 then we use the normal approximation:
𝑛𝑛 𝑛𝑛 + 𝑛𝑛2 + 1
𝑇𝑇1 − 1 1
𝑍𝑍 = 2 ~ 𝑁𝑁 0, 1 with 𝑅𝑅𝑅𝑅: 𝑧𝑧 ≤ −𝑧𝑧𝛼𝛼 ∨ 𝑧𝑧 ≥ 𝑧𝑧𝛼𝛼
𝑛𝑛1 𝑛𝑛2 𝑛𝑛1 + 𝑛𝑛2 + 1 2 2
12
 SPSS uses similar “Mann-Whitley U test” which gives the same results.
 Rejection of 𝐻𝐻0 might also be caused by difference in form or spread.
 When populations are normally distributed, then t-test is preferred.
The Wilcoxon Rank Sum Test disregards some information.
For example, it is not sensitive to extreme values. But the t-test is.

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