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# HYPOTHESIS-TESTING

## First some basics ?

HYPOTHESIS ???
is formally stated expectation about how a behaviour operates. is a proposition that a researcher wants to verify. is a conjectural statement of the relation between two or more variables.

## BASIC ELEMENTS OF A TEST OF HYPOTHESIS

Formulate a Null Hypothesis (H0). Formulate an Alternative Hypothesis (H1) Select a suitable Test Statistic Specify a Level of Significance () Define a suitable Decision Criterion based on and Test Statistic Make necessary Assumptions if required Experiment and Calculation of Test Statistic

P - Value .????
Probability Value or p - value is the probability of observing a sample outcome even more extreme than the observed value when the null hypothesis is true. The smaller the p - value, the smaller are the chances that variations are caused by chance/random factors. It is also called observed level of significance. It provides an alternative way to decide whether a null hypothesis is to be accepted. It has following advantages and thats the reason mostly statistical softwares are giving printouts with p - values: it allows a decision maker to use his/her own level of significance and make decision accordingly once sample results are available with necessary statistic it provides very precise information about the highest level of significance at which the null hypothesis must be accepted.

preparing ourselves for the necessary backdrop to take forward a solid move for

## PARAMETRIC TEST ...

A PARAMETRIC test is a test whose model requires and specifies certain conditions about the parameters of the population from which the sample is drawn. Such tests makes certain assumptions about the nature of the underlying population like Normal Probability Distribution and their validity rests upon the validity of these assumptions. These test are more powerful and strong in their assertions and are usually applicable when data is interval scale or Ratio Scale.
These tests are very much rich and developed.

## NON PARAMETRIC TESTS...

These tests are also known as distribution free methods. These are the tests whose model does not specify conditions and assumptions about the parameters of the population; they lack parameters. These are widely used for nominal or ordinal data where no parametric tests are not available at all. However, they can also be used for Ratio or Interval Scale data as well.

## NON PARAMETRIC TESTS (continued) ...

These tests are not very powerful and strong in their assertions. Non-parametric statistical tests are typically much easier to learn and apply than are parametric tests. These tests usually convert data into ranks (hence, such tests are also sometimes known as Rank Tests) or signs and thereby may loose some important information.

First, we take

HYPOTHESIS

## TESTING RELATED TO NOMINAL DATA .

And, use NON-PARAMETRIC TESTS

## LOOKING FOR A PROPER TEST

Dyu i kh eetCmow lh a e)i a opr n t o o t n ti vn o m et Gm s n pouiyo h s ( n a s t t socs r hni n u r lhrae wl ?YsN hw ei I d clu etg t od e/ o a c a ta i o r
2 2 2

2 2 2

2 2 2

2 2 2

2 2 2

Count

2 2 2

2 2 2 YS E N O

Can we conclude from the above data that there is a significant difference between those who say YES and those who say NO?

## NOMINAL DATA ONE SAMPLE

ONE SAMPLE AND POPULATION HAS ONLY TWO CATEGORIES:
2THE BINOMIAL TEST
2APPLICABLE TO POPULATIONS HAVING ONLY TWO CLASSES 2THE PROPORTION OF CLASS ONE WOULD BE p AND THAT OF ANOTHER CLASS 1 - p 2NULL HYPOTHESIS IS - WHETHER THE POPULATION PROPORTION IS p 2IF THE SAMPLE SIZE IS SMALL - APPLY BINOMIAL PROBABILITY DISTRIBUTION. 2IF THE SAMPLE SIZE IS LARGE - APPLY NORMAL

Before starting or after the journey were you or will you stay in hotel / Dharmshala etc.

YES NO

## UNDERSTANDING SPSS OUTPUT

B i n o m i a l Te s t C a te g o ry N D o y o u t h in k t h is G rvoe un pt 1 e YES 2 68 ( C o m m o n w e a l t h G a m e s) i s a n o p p o r tu n i ty Gt or o u p 2 2 32 sh o w c a se r i c h I n d i a n N O c u l t u r a l h e r i t a g e Tt oo ta o r l d ? wl 5 00 Y e s/ N o a .B a se d o n Z A p p r o x i m a t i o n . O b se r v e d A sy m p . S i g . P r o p . T e st P r o p( 2 -t a i l e d ) . .5 4 .4 6 1 .0 0 .5 0 .1 1 8
a

## LOOKING FOR A PROPER TEST

2. Which of the following sports do you like most to watch on TV
10 0

a. b. c. d. e.

Athletics Cricket
Count

8 0

6 0

4 0

Hockey WWF

2 0

0 A le th tics C e rick t H ck y o e W F W O e th rs

S o y u lik m s to w tc o T p rts o e ot a h n V

## Any other (please specify) __________________

C se we h db F E a s ig te y R Q

Can we conclude for the above that people watch different types of sports equally?

## NOMINAL DATA ONE SAMPLE (CONTINUED)

ONE SAMPLE AND POPULATION HAS MANY CATEGORIES:

## THE CHI- SQUARE (2) TEST

APPLICABLE TO POPULATIONS HAVING ONLY TWO OR MORE CLASSES THE OBJECTIVE OF THIS IS TO TEST WHETHER THE DISTRIBUTION OF OBSERVATIONS IN VARIOUS CATEGORIES IS ACCORDING TO SOME EXPECTED PATTERN. NULL HYPOTHESIS IS WHETHER THE OBSERVED DISTRIBUTION IS AS PER EXPECTED

## UNDERSTANDING SPSS OUTPUT

NPar Tests Chi-Square Test
S o y u lik m s to w tc o T p rts o e ot a h n V O s rv d N be e A le s th tic C kt ric e Hc e ok y W F W O e th rs T ta o l 5 0 8 0 7 0 1 5 4 5 20 6 E p c dN x e te 5 .0 2 5 .0 2 5 .0 2 5 .0 2 5 .0 2 Rs u l e id a -2 .0 2 .0 8 1 .0 8 -3 .0 7 -7 .0

## Chi-Square a df Asymp. Sig.

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 52.0.

## To appreciate, the concept of RELATED SAMPLE, lets look at...

Is there any statistically significant difference in the state of ENO before and after joining a health club?

Is there any statistically significant difference in the state of the person before and after taking coffee?

Related Samples...
. are defined as those where the observations in one has some relation or influence on those of the other sample.

## How do we visualize in SPSS?

Research Project:
What to do ? IMPACT OF PLAY SCHOOL EDUCATION ON THE PERSONALITY OF CHILDREN CHILDREN

One of the research issue in it whether children joining play school become more independent and confident

## NOMINAL DATA TWO SAMPLES (RELATED)

THE Mc NEMAR TEST
 APPLICABLE to cases where research design is BEFORE AND AFTER; usually, it is used to test the effectiveness of a treatment conducted on one set of respondents  Applicable for TWO SAMPLES WITH TWO CLASSES  To apply it, one has to set up a table of the following format:

+ C A

+ B D

A AND D SHOW CHANGES BETWEEN RESPONSES. IF THE TREATMENT HAS NO IMPACT, THEN HALF OF (A+D) MUST CHANGE IN ONE DIRECTION WHILE OTHER HALF SHOULD

## NOMINAL DATA TWO SAMPLES (RELATED)

THE Mc NEMAR TEST

(CONTINUED)

NULL HYPOTHESIS IS - WHETHER THE PROBABILITY OF A, P(A), IS EQUAL TO PROBABILITY OF D, P(D); i.e. P(A) = P(D) = 1/2. FOR IT, WE HAVE 2 = (A-D)2/(A+D) WITH df = 1 WITH THE CORRECTION FOR CONTINUITY2 = ( A-D 2/(A+D) WITH df = 1 -1) IF THE EXPECTED FREQUENCY IS SMALLER

Were you satisfied with the billed amounts prior to privatization? YES NO Were you satisfied with the billed amounts after privatization? What is the thing YES NO

## LOOKING FOR A PROPER TEST

1. Before the present mess contractor, was the food oily and/or Spicy?
110

YES/NO
110

105
100

100

YES/NO

100

90

90
80

80
70

Count

70

70 YES NO

Count

75

60 Y ES NO

## UNDERSTANDING SPSS OUTPUT

McNemar Test
B efore the present m ess contractor, w the food as oily and/or S picy & Is the food of the present m ? ess contractor oily and/or S picy ? Is the food of the present m ess contractor oily and/or S picy? 1 2 40 30

B efore the present m ess contractor, w the food as oily and/or S picy? 1 2
b

60 45

T est S tatistics

B efore the present m ess contractor, w the food oily and/or as Spicy? & Is the food of the present m ess contractor oily and/or S picy? N C hi-S quare Asym S p. ig.
a

## LOOKING FOR A PROPER TEST

Research Project:

## HEALTH OF THE STUDENTS IN THE INDIAN SCHOOL SCHOOL

One of the research issue in it How do students perceive their health? and the researcher is interested in knowing whether this perception is different among male and female students. What would you like to test in such a case?

## NOMINAL DATA TWO SAMPLES (UNRELATED)

THE CHI - SQUARE TEST
APPLICABLE IN CASES HAVING TWO SAMPLES WITH K CLASSES. IT CAN BE USED EVEN IN BEFORE & AFTER SITUATIONS PROVIDED IT HAS K CLASSES. IT FOLLOWS CHI - SQUARE DISTRIBUTION WITH df = (K-1).

(CONTINUED)

## THE FISHER EXACT PROBABILITY TEST

2applicable when
the data has only two unrelated data; and the sample size is small (preferably less than 20)
 To apply it, one has to set up a table of the following format:

Group I Group II
2the exact

Group xGroup y A B C D
probability of observing a

## NOMINAL DATA TWO SAMPLES (UNRELATED)

(CONTINUED)

A C D + B + A B p = N + A B

On this basis and referring to necessary Table, one can decide whether H0 is to be accepted or rejected.

From the following data, can we conclude whether a particular Fund is performing better than the other? PERFORMING PERFORMING
BETTER THAN MARKET 25 22 WORSE THAN MARKET 15 25 SECTOR FUNDS BALANCED FUNDS

## SPSS OUTPUT FOR FINAL DECISION

Crosstabs
FUNDS * PERFORMANCE OF FUNDS Crosstabulation Count PERFORMANCE OF FUNDS PERFORMING BETTER PERFORMING WORSE THAN MARKET THAN MARKET 2 2 2 2 2 2 2 2 2 2 2 2
C hi-S quare T ests V alue 22 b . 2 2 22 . 2 2 22 . 2 2 22 . 2 2 2 2 df 2 2 2 2 A sym S p. ig. E act S x ig. E act S x ig. (2 -sided) (2 -sided) (2 -sided) .2 2 2 .2 2 2 .2 2 2 .2 2 2 .2 2 2 .2 2 2

Total 2 2 2 2 2 2

FUNDS Total

## SECTOR FUNDS BALANCED FUNDS

P earson C hi-S quare C ontinuity C orrection Likelihood R atio Fisher's E act Test x Linear-by-Linear A ssociation Nof V alid C ases

a. C puted only for a x table 2 om 2 b. 2 cells (. % have ex 2) pected count less than2 The m . inim ex um pected count is 22 . 22 .

DECISION ?????

## MORE THAN TWO SAMPLES NOMINAL DATA

Research Project:
What to do ? QUALITY OF MANAGEMENT IN PUBLIC INSTITUTIONS INSTITUTIONS

One of the research issue in it Do public have different experiences in dealing with public institutions like DDA, MCD, NDMC, etc.?

NOMINAL DATA

## MORE THAN TWO SAMPLES (RELATED)

THE COCHRAN Q TEST
 IT IS AN EXTENSION OF Mc NEMAR TEST FOR K RELATED SAMPLES.  COCHRAN Q TEST IS USED TO TEST WHETHER THREE OR MORE RELATED SETS OF FREQUENCIES DIFFER SIGNIFICANTLY AMONG THEMSELVES.  IT IS APPLICABLE WHEN RESPONSES ARE OF DICHOTOMOUS IN NATURE - YES OR NO;

NOMINAL DATA

## MORE THAN TWO SAMPLES (RELATED)(CONTINUED)

THE COCHRAN Q TEST THE FORMULA IS K(K 1)(C j - C) 2 j Q= K S Ri2 i

WHERE

K = NUMBER OF COLUMNS; Ri = TOTAL OF ith ROW; Cj = TOTAL OF jth COLUMN; S C = SUM OF TOTAL SCORES; = MEAN OF COLUMNS TOTAL.

Assume that five members A, B, C, D, and E of a mountaineering club each attempt three different rock climb at each of which they either succeed or fail. The outcomes are shown 0 as success. MEMBERS below readB as fail and 1 D A C E
CLIMB#1 CLIMB#2 CLIMB#3 1 1 0 1 0 1 0 0 1 0 1 1 1 0 1

## SPSS OUTPUT FOR FINAL DECISION

NPar Tests Cochran Test
Frequencies V alue C B LIM # C B LIM # C B LIM # 2 2 2 2 2 2 2 2 2 2 2

T s Saisi s e t t t tc N Cc r n Q o ha 's d f Ay p S . s m. ig 2 22 a 2 .2 2 .2 2 2

a 2 tr ae a as c e s . is e t d s u c s .

DECISION ?????

Research Project:
What to do ? IMPACT OF Sarve Shiksha Abhiyan ON THE RURAL DEVELOPMENT IN INDIA INDIA

One of the research issue in it- Whether no. of children from different castes in villages going to primary schools, middle schools and high schools are different.

NOMINAL DATA

MORE THAN TWO SAMPLES (UNRELATED) THE CHI - SQUARE TEST It is an extension of 2 independent samples. The null hypothesis is whether there exists a significant difference between the K independent groups.

Assume that you want to judge the Financial Analysts ability to predict correctly share prices in the market. For that you collected the following data for 100 days aboutthe prediction of 5 analysts about a particular FORECAST share. WITHIN ACCEPTABLE BEYOND ACCEPTABLE
RANGE ANALYST S A B C D E 35 45 36 48 50 RANGE 65 55 64 52 50

## SPSS OUTPUT FOR FINAL DECISION

Crosstabs
FINA CIA A A YS * FOR CA O S A P ICE Crosstabulation N L N L TS E ST F H RE R S Count FO C S OF S A RE A T H RE P RICE S W INA CE TA LE ITH C P B B YO D A E N CCE TA P BLE RA GE N R N A GE 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 22 2 22 2

FIN N L A CIA A A S N LY TS

A B C D E

Total

Total 22 2 22 2 22 2 22 2 22 2 22 2

C i- q a eT ss h Sur e t V lu a e 22 2 .2 22 2 .2 22 2 .2 2 2 2 d f
a

Ay p S . s m. ig (2 e ) - id d s 2 2 2 .2 2 2 .2 2 2 .2 2 2

DECISION ?????

## ONE SAMPLE NOMINAL DATA

2 CATEGORIES MORE THAN 2 CATEGORIES

BINOMIAL TEST

## SUMMARY OF TESTS RELATED TO NOMINAL DATA TWO SAMPLES

TWO SAMPLES NOMINAL DATA
RELATED SAMPLES UNRELATED SAMPLES

2 CLASSES

McNemar Test

## MORE THAN 2 SAMPLES NOMINAL DATA

RELATED SAMPLES UNRELATED SAMPLES

## AFTER TESTING FOR NOMINAL DATA; NOW WE MOVE TO

HYPOTHESISTESTING RELATED TO

## ONE SAMPLE ORDINAL DATA

Research Project:
What to do ? PUBLIC SCHOOLS IN DELHI A STUDY STUDY

One of the research issue in it Do public have different preferences in sending their wards to private public school, government-aided schools and government schools?

## LOOKING FOR A PROPER TEST

Research Project: Satisfaction Survey among participants of National Management Program at Management Development Institute, Gurgaon Gurgaon One of the research issue in it -

2 2 2 2 2 2

2 2

2 2

2 2

2 2

2 2

Count

## ORDINAL DATA ONE SAMPLE

THE KOLMOGOROV - SMIRNOV TEST ( K-S TEST )
K - S one sample test is a test of goodness of fit for ordinal data. It tests whether there exists any difference in the distribution of observed values and the expected values according to some specified distribution. It is based on the concept of cumulative frequency. If both the distributions are identical then the deviations among them would be

## ORDINAL DATA ONE SAMPLE (continued)

THE KOLMOGOROV - SMIRNOV TEST ( K-S TEST )

For One Tailed Test D = MAXIMUM Sn1(X) - Sn(X) where, Sn1 = Proportion of Cum. Frequency of distribution one; Sn = Proportion of Cum. Frequency of theoretical distribution;

## 2For Two Tailed Test, take

D = MAXIMUM ( Sn1(X) - Sn(X) )

## that is with sign.

 If sample size is large, then one should use the following formula:

## 2 = 4 D2 (n1 n2)/( n1 + n2 ) with df = 2.

What according to you should be the ideal period of review? a) 1 Month b) 2 Months c) 3 Months d) 4 Months

## SPSS OUTPUT FOR FINAL DECISION

NPar Tests
One-Sample Kolmogorov-Smirnov Test REVIEW PERIOD FREQ_ 2 22 2 22 2 2 2 2 2 2 2 .222 .222 .222 .222 -.222 -.222 22 2 . 2 22 2 . 2 .222 .222

a,b

## Minimum Maximum Absolute Positive Negative

Kolmogorov-Smirnov Z Asymp. Sig. ( 2 -tailed) a. Test distribution is Uniform. b. Calculated from data.

DECISION ?????

Research Project:
What to do ? DETERMINANTS OF MOTIVATIONAL
LEVEL OF THE FLOOR-LEVEL WORKERS A CASE STUDY OF PUNCHKULA PLANT

One of the research issue in it Is the motivation level of floor works at PUNCHKULA PLANT higher than that of the industry?

## ORDINAL DATA ONE SAMPLE (continued)

THE SIGN TEST FOR THE MEDIAN
It is used to test whether the median value of the sample is same as that of the population, i.e.  Ho : MEDIAN = Mo If H1 : MEDIAN Mo; then T = MIN(n1,n2); If H1 : MEDIAN < Mo; then T = n1; If H1 : MEDIAN > Mo; then T = n2; where n1 = Number of observations < Mo; and, n2 = Number of observations > Mo; For large samples, one may use Binomial Distribution with p = 1/2 and n = n 1 + n 2 or

Celebrity increases appeal of a product 1. Strongly Disagree 2. Disagree 3. Neither Disagree nor Agree 4. Agree 5. Strongly Agree What is the thing

## SPSS OUTPUT FOR FINAL DECISION

NPar Tests
T t S tis s es ta tic
a

CL BI Y E E RT I CESS NRAE P OUT R DC APA PEL N Md n e ia C i-S u re h qa d f Ay p S . s m . ig Y te ' C n u a s o tin ity C rre tio o c n 2 2 2 22 2 . 22 22 .2 2 .2 2 2 22 22 .2 2 .2 2 2 2 2 2 2 2

C i-S u re h qa d f Ay p S . s m . ig

a G u in V ria le V R . ro p g a b : A

DECISION ?????

## TWO SAMPLES ORDINAL DATA (RELATED)

Research Project:
What to do ? A STUDY OF EFFECTIVENESS OF
TRAINING PROGRAMMES CONDUCTED BY NSE FOR SHARE BROKERS AND SUB-BROKERS IN INDIA

One of the research issue in it Is the comfort level of brokers/sub-brokers in trading mechanism increased after training?

ORDINAL DATA
THE SIGN TEST

TWO SAMPLES(RELATED)
It is applicable for two samples which are related. It tests whether there exists any difference between the observations of two related samples. NULL HYPOTHESIS : P(A < B) = P(A>B) = 1/2; i.e. if there is no difference in the related observations then number of changes of higher values over other must be equal to number of changes of lower values over other. For Small Sample: USE BINOMIAL DISTRIBUTION AND for large samples: USE NORMAL DISTRIBUTION with MEAN = (1/2)N AND VARIANCE = 1/4 N where N = total number of signs.

ORDINAL DATA
THE SIGN TEST

TWO SAMPLES(RELATED)(continued)
To apply the Sign Test, our data should be presented as follows and work out the sign of difference among the values of Sample A and Sample B.
Sample A Sample B 1 2 3 : : Sign

## ORDINAL DATA TWO SAMPLES (RELATED)

THE WILCOXON MATCHED PAIRS SIGNED RANK TEST It is applicable for two samples which are matched. SIGN TEST tells the direction but not the magnitude. In it, the differences are found and ranked ignoring the sign. (Drop the observation with zero difference and assign average rank in case of a tie). NULL HYPOTHESIS : No impact of treatment. Hence, the sum of positive ranks must be equal to that of negative ranks. FOR ONE TAIL TEST - T+ or T- depending upon ALTERNATIVE HYPOTHESIS. FOR TWO - TAIL TEST - MIN(T+ ,T-).

## ORDINAL DATA TWO SAMPLES (RELATED) (CONTINUED)

THE WILCOXON MATCHED PAIRS SIGNED RANK TEST

For small sample, USE t STATISTICS and for large samples use NORMAL

PROBABILITY DISTRIBUTION with MEAN = ( N ( N+1 )/4 ) AND VARIANCE = (N(N+1) (2N+1)/24) where N = Total Numbers of Pairs less dropped outs.

Do you and your boss go the joint goal setting meeting after doing proper groundwork based on MOU targets for the department? (Tick one)
YOU YOUR BOSS

a) b) c) d) e)

## SPSS OUTPUT FOR FINAL DECISION

NPar Tests Sign Test
Fe u n i s r q e ce Y U B S -Y U OR OS O Ng t eDf r n e e aiv if ee c s P s iv Df r n e o it e if ee c s Ts c ie Tt l oa
a b

N 2 2 2 2 2 2 2 2 2 22 2 2

a Y U B S <Y U . OR OS O b Y U B S >Y U . OR OS O c Y U B S =Y U . OR OS O
T t tt t s e Si i s a c s
a

YR S O BS U O - O Y U Z Am i .(- ie s p g t ld y .S a ) a . S Tt i ne g s 2 - 2 . 2 2 .2 2 2

DECISION ?????

## SPSS OUTPUT FOR FINAL DECISION

NPar Tests Wilcoxon Signed Ranks Test
R anks N Y U B SS - Y O R O OU N egative R anks P ositive R anks Ties Total 22a 2 22b 2 22c 2 22 22 M ean R ank 22.2 22 22.2 22 S of Ranks um 222 2 222 2 . 222 2 222 2 .

a. Y U B S < Y U O R O S O b. Y U B S > Y U O R O S O c. Y U B S = Y U O R O S O

Tt tt t s e Si i s a c s

YR S OBS UO -O Y U Z A p i . ti d s . g a ) y S (- l m e a . b . 2

- 2 . 2 a 2 .2 2 2

B dne t e n. a on a r k s e gi a s v W oS eR se i oni n a Tt l x gd n c k s

DECISION ?????

## TWO SAMPLES ORDINAL DATA (UNRELATED)

Research Project:
What to do ? QUALITY OF MANAGEMENT IN INDIAN CORPORATE SECTOR

One of the research issue in it Is there any significant difference in the opinions of shareholders and the management about the quality of governance in India?

Another Problem
What to do ?

Research Project:
PHYSICAL FITNESS AMONG STUDENTS OF INDIA

## One of the research issue in it Is there any significant

difference in PHYSICAL FITNESS of boy students and girl students?

## ORDINAL DATA TWO SAMPLES (UNRELATED)

THE MEDIAN TEST
 It is applicable for two samples which are independent.  It is a test of central tendency.  Ho : M 1 = M 2  For this test, find the grand median and prepare a table as follows:

(continued)

## THE MEDIAN TEST

It follows 2 distribution where

2 = (A +B) (A +C) (B+C) (B+D ) 2 N ( A D - BC- N / 2 )

with df = 1

## ORDINAL DATA TWO SAMPLES (UNRELATED)

THE MANN WHITNEY TEST ( also known as Wilcoxon Rank Sum Test )
 It is applicable for two samples which are independent.  It is a test of difference of central tendency of two samples. It is an extension of t -Test.  It ranks the observations of both samples as if they are coming from the same population. And, then define U-Statistic as thus U1 = (n1 n2 ) + (n1(n1+1)/2) - Ranks of n1 where n1 is size of the sample with fewer observations. U2 = (n1 n2 ) - U1; and U = Minimum(U1, U2)  For large samples, it follows normal probability distribution

## Monthly usage/bill in Rs. (Mark at appropriate option)

a) b) c) d) e) f) <300 300-500 500-700 700-1000 1000-2000 >2000

## SPSS OUTPUT FOR FINAL DECISION

NPar Tests Mann-Whitney Test
Ranks MONTHLY USAGE/BILL IN Rs. MOBILE...? PREPAID POST PAID Total
T tStsc e t it s s a i

## Mean Rank Sum of Ranks 22 2 2 22 2. 2 222. 2 2 2 22 22 2 2 22 2. 2 222. 2 2 2 22 22 2

a

Mn h eU a - in nW y t Wx W ic o lon Z AmS ( -a d s p i . t ie y . g l ) a .

MT Y OH NL U G IL S EL A / B I R Ns . 22 2 2 2 2 2 2 2 . 22 2 2 2 2 2 2 2 . -2 2 .2 2 .2 2 2

G pg a b:M I E? r un Vi l oi r e O .. a B . L

DECISION ?????

## SPSS OUTPUT FOR FINAL DECISION

NPar Tests Mann-Whitney Test
Ran ks G RO UPING VARIABLE PHYSICAL BOYS F IT NESS SCO RE G IRLS T otal
T t S tis s es ta tic
a

## M n -W itn y U an h e W oo W ilc x n Z A y p S . ( -ta d s m . ig ile2 )

P Y IC L HS A F NS IT E S S OE C R 2 2 2 .2 22 2 2 2 .2 22 -. 2 2 2 .2 2 2

a G u in V ria le G O P GV R B E . ro p g a b : R U IN A IA L

DECISION ?????

There is no difference between median spending. Do you believe that there is no difference between the spending of Pre- and Post-Mobile Users?
USAGE DISTRIBUTION BEHAVIOUR AMONG PRE- AND POST-PAID MOBILE USERS
2 2

2 2

## Look at this Graph!!!!!!!

POST OR PRE-PAID?
PRE-PAID

2 2

2 2

Count

## 2 <222 2222 2- 2 22 - 22 2222 >2222 2222 2- 2 2222 2 - 22

POST-PAID

MONTHLY USAGE/BILL

There is no difference between median spending. Do you believe that there is no difference between the spending of Pre- and Post-Mobile Users?

P O S T O R P R E -P A ID ? * M O N T H L Y U S A G E / % w ith in P O S T O R P R E -P A ID ?

## ORDINAL DATA TWO SAMPLES (UNRELATED)

THE KOLMOGOROV TEST for two samples. SMIRNOV

It tests whether the frequency distribution of two samples is same. An extension of one sample goodness of fit test.

## Monthly usage/bill in Rs. (Mark at appropriate option) REVISITING..

a) b) c) d) e) f) <300 300-500 500-700 700-1000 1000-2000 >2000

## SPSS OUTPUT FOR FINAL DECISION

NPar Tests Two-Sample Kolmogorov-Smirnov Test
Fe u n i s r q e ce M N HY OT L U A E I LI R. S G /B N s L MB E ? OI . L .. P EA RPI D P S PI OT A D Tt l oa
T s Sai t c e t t t si s
a

N 2 2 2 2 2 2 2 2 2

DECISION ?????

## MORE THAN TWO SAMPLES ORDINAL DATA (UNRELATED)

Research Project:
What to do ? ACCEPTABILITY OF FIFTH PAY
COMMISSION REPORT AMONG THE GOVERNMENT EMPLOYEES

One of the research issue in it DOES THE REPORT HAS SAME DEGREE OF ACCEPTABILITY ACROSS VARIOUS CATEGORIES OF EMPLOYEES?

ORDINAL DATA
THE MEDIAN TEST

## MORE THAN TWO SAMPLES (UNRELATED)

@ It is an extension of Two-Sample Median Test to more than two samples. @ It tests whether K - independent samples are from the same population or from the populations with identical medians. @ To apply it, first find the GRAND MEDIAN combining all observations of all samples; then make a table as given below: SAMPLES 1 2 3 ... NUM BER OF OBSERVATIONS ABOVE THE MEDIAN NUM BER OF OBSERVATIONS BELOW THE MEDIAN

ORDINAL DATA
MORE THAN TWO SAMPLES (UNRELATED)
THE KRUSKAL WALLIS TEST- ONE WAY ANALYSIS OF VARIANCE
 It is a test that is very useful in determining whether K independent samples are coming from the same population; that is to say, it tests basically whether the differences among samples signify genuine population differences.  In it, first all observations must be replaced by ranks to be allocated to each observation on the basis of combined observations from all the samples.  If Null Hypothesis is to be true then the sum of ranks for each sample should be significantly different. Then, the following test statistics is calculated-

ORDINAL DATA
MORE THAN TWO SAMPLES (UNRELATED)
(continued)

## THE KRUSKAL WALLIS TEST- ONE WAY ANALYSIS OF VARIANCE


12 H= 3 1 ( N +) N ( N +) j = n j 1 1
K

Rj2

where, K = number of samples; nj = size of sample j ; N = total number of observations in all samples; and Rj = summation of ranks in the jth sample.

The example taken is based on experimental designed 4 different groups of students have been taught differently by using 4 different techniques of teaching. Their test records are noted which are given below:
1 65 87 73 79 2 75 69 83 81 3 59 78 67 62 4 94 89 80 88

## SPSS OUTPUT FOR FINAL DECISION

NPar Tests

Kruskal-Wallis Test
Ranks TEST SCORES GROU OF STU P DEN TS GROU # 2 P GROU # 2 P GROU # 2 P GROU # 2 P Total
a , b

N 2 2 2 2 2 2

M ean Rank 22 . 2 22 . 2 22 . 2 22 22 .

Ts S tsi s e t t i tc a

## Ci Sur h qae d f A m S. s p i y . g a . b . K saWls et r k l ai Ts u l

TS ET SOE C RS 22 2 . 2 2 .22 2

DECISION ?????

## STUDYING THE DATA AFTER REMOVING ONE SAMPLE

Mr. Jayant Saxena is doing a research project on the academic excellence among Indian MBA students. For that, he has divided all the students into 3 categories Engineers and Science Graduates, Commerce and Economic Graduates; and others. He collected their final grade points that are out of a total of 5 points.

## Understanding SPSS Output

Kruskal-Wallis Test
Rn s ak GA E O T RD P I S N O TO 5P I T U F O S N E U A I NL DCT A O B CG ON A K R UD EG ER G NI EI N N AD C NE N S I CS E C ME C AD O MR E N E OO I S C NM C O HR TES Tt l oa
a , b

N 2 2 2 1 2 3 6 6

Ma Rn en ak 4. 4 58 2. 9 96 2. 7 51

Ts S ts c et t i t s a i

C- qa hSur i e d f A m S. s p i y . g a . b .

GAE RD P I T OT O SU N O 5 OT F PI S N 1. 5 4 5 2 2 .0 01

## MORE THAN TWO SAMPLES ORDINAL DATA (RELATED)

ORDINAL DATA
MORE THAN TWO SAMPLES (RELATED)
THE FRIEDMAN TEST - TWO ANALYSIS OF VARIANCE BY RANKS WAY

y It is used when K samples are matched or dependent and are having ordinal data. y It is two - way analysis for differences. y It is a test that is very useful in determining whether K related samples are from the same population and hence, have no differences among themselves. y In it, the design has rows - representing set of matched subjects or respondents and column - representing various samples obtained under various conditions. y After presenting the data in a tabular form, each row scores are to be ranked.

ORDINAL DATA
MORE THAN TWO SAMPLES (RELATED)
(continued)

## THE FRIEDMAN TEST - TWO ANALYSIS OF VARIANCE BY RANKS

WAY

y If null hypothesis is true then the distribution of K ranks in each sample would be a matter of chance and hence, the sum of ranks for each column should be similar. y To test for the differences in the column totals of k sum, it makes use of the following statistics : 12 2 = (R 3 1 j 2 ) n ( k +) nk ( k + j = 1) 1
whe re k =num e of colum ; br ns n =num e of rows or num e of m br br atche sub cts; a d je nd Rj =sum ation of ranks in thejth sa ple m m .

Assume that a professor of management read somewhere that the time of the day can affect the students learning in the classroom. For that, he undertook an action research. He had selected 4 topics along with 4 quizzes related to each of them to be administered at the end of the lecture. The topics are selected randomly to be delivered at different times of the day followed by the related quiz. In a particular week, on Monday he had a lecture and quiz at 8:30 am; on Tuesday at 11: am; on Wednesday at 12:30 pm; and on Thursday at 2:30 pm. There were 19 students in the class; the grade points for each quiz was out of 5 points and the you wish toof What is alongthingthe time of the with grade points the students in each quiz administration were noted. PUT ON TEST?

## Understanding SPSS Output

Friedman Test
ERY ON G A L MRI N L T MRI G AE ON N ERY F E NO A L AT RON L T AT RON AE F E NO T tStsc e t it s s a i N CS a h qr i ue d f AmS s p i. y . g a . F da T t r m e i e n s
a

Rns ak M n ak e Rn a 17 . 4 29 . 2 34 . 7 20 . 5

1 9 31 25 . 3 3 .0 0 0

## ONE SAMPLE ORDINAL DATA

GOODNESS OF FIT CENTRAL TENDENCY TEST

K-S TEST

SIGN TEST

## TWO SAMPLES ORDINAL DATA

RELATED SAMPLES

UNRELATED SAMPLES

SIGN TEST

MEDIAN TEST

K-S TEST

## SUMMARY OF TESTS RELATED TO ORDINAL DATA MORE THAN TWO SAMPLES

MORE THAN 2 SAMPLES ORDINAL DATA RELATED SAMPLES THE FRIEDMAN TEST TWO WAY ANALYSIS OF VARIANCE BY RANKS UNRELATED SAMPLES

MEDIAN TEST

## ONE SAMPLE INTERVAL/RATIO SCALE DATA

TEST RELATED TO MEASURE OF CENTRAL TENDENCY

## LOOKING FOR A PROPER TEST

Dr. Bhaskar Singhal is doing his MD on A STUDY OF INCIDENCE OF HEART DISEASE IN THE MIDDLE-AGE WORKERS IN INDIAN MANAGERS. One of his research issues is related to degree of body fat in managers. For that, he has taken a sample of 36 middle age (30-40 years) managers and their percent of body fat is measured. The percent normal body fat should be 17.
2 2 .2

2 2 .2

2 2 .2

2 2 .2

S . D v= . td e Ma = en N = 22 . 22
2 2 . 2 2 . 2 2 . 2. 2 2 2. 2 2 2. 2 2 2. 2 2 2. 2 2 2. 2 2 2. 2 2 2. 2 2 2. 2 2 2. 2 2 2. 2 2

22 2

. 22 2

2 2 .2

T EP R E TB D F T H E CN OY A

## TESTS RELATED TO CENTRAL TENDENCY

THE MEAN TEST
We use either Z-test or t-test.

## Understanding SPSS Output

T-Test
One-Sample Statistics N THE PERCENT BODY FAT 36 Mean 17.8333
One -Sample Te st Test Value = 17 95% Confidence Interval of the Difference Lower Upper -1.6006 3.2672

df 35

## Mean Difference .8333

1. What is Null and Alternative Hypothesis? 1. Should we accept Ho? 1. What would be the p-value if our test is one tail test?

## LOOKING FOR A PROPER TEST

TimesMarket.Com is a web-based marketing company. It claims that at least 20% of the visitors to its web-site places an order with it. To test this claim, assume that you have taken a sample to 2000 visitors to the site and noted that only 373 visitors A A IS O T E IT PA E A ODR finally ordered. HS V I R H S E L CD N RE ? T
2 2 2 2 2 2 2 2

2 2 2 2

Frequency

2 2 2 2 YS E N O

HS V I O T E I E L CD N R E ? A A I T R H S PA E A ODR S T

## TESTS RELATED TO CENTRAL TENDENCY

THE PROPORTION TEST
We use either Z-test or t-test.

## Understanding SPSS Output

B in o m ia l Te s t C a te g o ry HA S A V IS IT O R T HE S IT ro u p 1 Y E S GE P L A C E D A N O R D E R ? G ro u p 2 NO T o ta l O b s e rv e d A s y m p . S ig . N P ro p . T e s t P ro p . (1 -ta ile d ) a 373 .2 .2 .0 6 9 ,b 1627 .8 2000 1 .0

## LOOKING FOR A PROPER TEST

It is claimed that Indian Stock Markets are not very risky as compared to other emerging markets. To test it, Mr. Shantanu Bose calculated mean daily returns and its standard deviation of BSE SENSEX. One research study has shown that the South-East Asian Markets are having a standard deviation of 0.015 in daily returns. e Statistics De scriptiv
N BSE SENSEX RETURNS IN THE PAST Valid N (listwise) 22 22 22 22 Mean Std. Deviation

.2222222 .2222222

## TESTS RELATED TO VARIABILITY

THE STANDARD DEVIATION TEST where P is some Ho : = P specified value of standard deviation. Test Statistics is 2 = (n - 1)s2/P2 with df = n - 1.

Understanding Output

CHI-SQUARE TEST
SAMPLE SIZE SAMPLE VARIANCE TEST VARIANCE TEST STATISTICS (CHI SQUARE) p-VALUE 1926 0.000281 0.000225 2402.202374 0.000000

## INTERVAL/RATIO SCALE DATA

TEST RELATED TO DIFFERENCE IN CENTRAL TENDENCY

## LOOKING FOR A PROPER TEST

Rozana is a retail chain. They have launched a special incentive point scheme in NCR region which run for last 6 months. Mr. Sunil Goel is interested in knowing whether such an incentive programme has any impact on sales.

What would be the research design? & What should be the appropriate test?

## Tests related to difference in their Central Tendency

THE PAIRED - t TEST
A test to determine whether there is a difference in the values of matched pairs. Paired - t Test has Mean = = Di / n )2 )/ (n-1)

and variance = ( ( Di -

## Understanding SPSS Output

Paired Samples Statistics Mean Pair 1 SALES BEFORE THE INCENTIVE SCHEME (IN LAKHS) SALES AFTER THE INCENTIVE SCHEME (IN LAKHS) 155.0000 N 10 Std. Deviation 62.5371 Std. Error Mean 19.7760

160.0000

10

66.0824

20.8971

Paire d Sample s Te st Paired Differences 95% Confidence Interval of the Difference Lower Upper

Mean Pair 1 SALES BEFORE THE INCENTIVE SCHEME (IN LAKHS) - SALES AFTER THE INCENTIVE SCHEME (IN LAKHS)

Std. Deviation

df

Sig. (2-tailed)

-5.0000

7.5277

2.3805

-10.3850

.3850

-2.100

.065

## NTERVAL/RATIO SCALE DATA

TEST RELATED TO DIFFERENCE IN CENTRAL TENDENCY

## LOOKING FOR A PROPER TEST

A Ph.D. student, registered with the Sociology Department of the University of Delhi, is working on The Social Conditions Of Textile Workers In India - A Comparative Study Of Delhi And Mumbai. He wants to know about the following Whether on the average the Mumbai Textile workers get more wages than those of their counterparts in Delhi. To get an answer to these questions, he has collected the YEARS MUMBAI DELHI following data
(avg. wages per month inRs. ) 22 2 22 2 22 2 22 2 22 22 22 22 22 22 22 22 22 22 22 22 22 2 2 2-2 22 2 2 2-2 22 2 2 2-2 22 2 2 2-2 22 2 2 2-2 22 2 2 2-2 22 2 2 2-2 22 2 2 2-2 22 2 2 2-2 22 2 MEAN STANDARD DEVIATION 22 2 22 2 22 2 22 2 22 22 22 22 22 22 22 22 22 22 22 22 22 2

What would be the research design? & What should be the appropriate test?

## TESTS RELATED TO DIFFERENCE IN THEIR CENTRAL TENDENCY

THE DIFFERENCE OF MEANS TEST THE DIFFERENCE OF PROPORTIONS TEST

## Understanding SPSS Output

In d e p e n d e n t S a m p le s T e s t L e v e n e 's T e s t fo r E q u a lity o f V a r ia n c e s t- te s t fo r E q u a lity o f M e a n s 9 5 % C o n fid e n c e In te r v a l o f th e D iffe r e n c e Mean S td . E rr o r S ig . (2 - ta ile d )D iffe r e n c e D iffe re n c e L o we r Up p e r 16 1 4 .8 7 8 .4 5 9 .4 5 9 2 4 4 .8 8 8 9 3 2 2 .4 8 6 1- 4 3 8 .7 5 1 2 9 2 8 .5 2 9 0 2 4 4 .8 8 8 9 3 2 2 .4 8 6 1- 4 4 2 .9 6 7 3 9 3 2 .7 4 5 0

S ig . .2 3 3

t .7 5 9 .7 5 9

df

## Understanding EXCEL Output

t-Test: Two-Sample Assuming Equal Variances Mean Variance Observations Pooled Variance Hypothesized Mean Difference df t Stat P(T<=t) one-tail t Critical one-tail P(T<=t) two-tail t Critical two-tail MUMBAI 1265.555556 596534.5278 9 467987.8889 0 16 0.759378034 0.229334609 1.745884219 0.458669218 2.119904821 DELHI 1020.666667 339441.25 9

## LOOKING FOR A PROPER TEST

Ruchir is doing a project on ARBITRAGE OPPORTUNITIES IN INDIAN STOCK MARKETS. One of his research issues is which stock exchange has more fluctuations in prices BSE or NSE?

What would be the research design? & What should be the appropriate test?

TO

## TESTS RELATED VARIABILITY

THE EQUALITY OF VARIANCE TEST FTEST H0 : 21 = 22 and H1 : 21 22 ; that is, it tests whether the samples are from two normal populations with equal variances. The test statistics used for it is - F = S21 /

S2

## Understanding EXCEL Output

F-Test Two-Sample for Variances Mean Variance Observations df F P(F<=f) one-tail F Critical one-tail B S E Sensex 3813.774774 545945.1468 1927 1926 8.839633079 0 1.077860912 NSE NIFITY 1276.547336 61761.06428 1927 1926

## INTERVAL AND RATIO SCALE DATA

MORE THAN TWO SAMPLES

ANALYSIS OF

## ONE SAMPLE INTERVAL/RATIO SCALE DATA

VARIATION TESTS CENTRAL TENDENCY TESTS

## TWO SAMPLES INTERVAL/RATIO SCALE DATA

RELATED SAMPLES

UNRELATED SAMPLES

VARIATION TEST

PAIRED t-TEST

F-TEST