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CH 19
CH 19
JOHN S. LOUCKS
St. Edwards University
Chapter 19
Nonparametric Methods
Sign Test
Wilcoxon Signed-Rank Test
Mann-Whitney-Wilcoxon Test
Kruskal-Wallis Test
Rank Correlation
Nonparametric Methods
Nonparametric Methods
Sign Test
Hypotheses
H0: No preference for one brand over the other
exists
Ha: A preference for one brand over the other
exists
Sampling distribution
Sampling Distribution
of the number of +
values if there is no
brand preference
2.74
= 15 = .5(30)
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Rejection Rule
Using .05 level of significance,
Reject H0 if z < -1.96 or z > 1.96
Test Statistic
z = (18 - 15)/2.74 = 3/2.74 = 1.095
Conclusion
Do not reject H0. There is insufficient evidence
in the sample to conclude that a difference in
preference exists for the two brands of peanut
butter.
Fewer than 10 or more than 20 individuals would
have to have a preference for a particular brand
in order for us to reject H0.
8
10
Hypotheses
H0: The delivery times of the two services are
the
same; neither offers faster service than the
other.
Ha: Delivery times differ between the two
services;
Sampling distribution
recommend the one
with
of T the
if populations
smaller times.
are identical
19.62
Sampling Distribution
T = 0
T
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Rejection Rule
Using .05 level of significance,
Reject H0 if z < -1.96 or z > 1.96
Test Statistic
z = (T - T )/T = (44 - 0)/19.62 = 2.24
Conclusion
Reject H0. There is sufficient evidence in the
sample to conclude that a difference exists in
the delivery times provided by the two
services. Recommend using the NiteFlite
service.
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Mann-Whitney-Wilcoxon Test
16
Mann-Whitney-Wilcoxon Test
17
18
Westin Freezers
$56.10
54.70
54.40
55.40
54.10
56.00
55.50
55.00
54.30
57.00
Brand-X Freezers
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20
Mann-Whitney-Wilcoxon Test:
Large-Sample Case
21
Mann-Whitney-Wilcoxon Test:
Large-Sample Case
T = n1(n1 + n2 + 1)
Standard Deviation
T 112n1n2(n1 n2 1)
Distribution Form
Approximately normal, provided
n1 > 10 and n2 > 10
22
T = 105 =1/2(10)(21)
24
Rejection Rule
Using .05 level of significance,
Reject H0 if z < -1.96 or z > 1.96
Test Statistic
z = (T - T )/T = (86.5 - 105)/13.23 = -1.40
Conclusion
Do not reject H0. There is insufficient
evidence in the sample data to conclude that
there is a difference in the annual energy cost
associated with the two brands of freezers.
25
Kruskal-Wallis Test
26
Rank Correlation
27
Rank Correlation
6 di2
n(n2 1)
28
29
Rank Correlation
rs 0
Standard Deviation
1
rs
n 1
Distribution Form
Approximately normal, provided n > 10
30
Rank Correlation
Connor Investors provides a portfolio
management service for its clients. Two of
Connors analysts rated ten investments from
high (6) to low (1) risk as shown below. Use
rank correlation, with = .10, to comment on
the agreement of the two analysts ratings.
Investment A
Analyst #1 1
Analyst #2 1
B
4
5
C
9
6
D
8
2
E F G H
6 3 5 7
9 7 3 10
I
2
4
J
10
8
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Hypotheses
H0: ps = 0 (No rank correlation exists.)
Ha: ps = 0 (Rank correlation exists.)
Sampling Distribution
Sampling distribution of
rs under the assumption
of no rank correlation
1
rs
.333
10 1
r = 0
rs
33
Rejection Rule
Using .10 level of significance,
Reject H0 if z < -1.645 or z > 1.645
Test Statistic
6 di2
6(92)
rs 1
1
0.4424
2
n(n 1)
10(100 1)
End of Chapter 19
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