BUSINESS RESEARCH METHODS

NON PARAMETRIC
TEST
GROUP NO 5
TEJAL
ANAND
SNEHA
ARCHANA
SHUBHAM B
SHUBHAM G
1
 MEANING
 Nonparametric statistics refer to a statistical method in which the data is not required to fit a normal
distribution. Nonparametric statistics uses data that is often ordinal, meaning it does not rely on numbers,
but rather on a ranking or order of sorts.
 Non parametric test are called distribution free tests as they do not require any assumptions regarding the
shape of the population distribution from where the sample is drawn.
 For example, a survey conveying the consumer preferences ranging from like to dislike would be
considered ordinal data.

2
For example……
consider a different researcher who wants to know whether going to bed early or late is linked to how
frequently one falls ill. Assuming the sample is chosen randomly from the population, the sample size
distribution of illness frequency can be assumed to be normal. However, an experiment that measures the
resistance of the human body to a strain of bacteria cannot be assumed to have a normal distribution.
This is because a randomly selected sample data may be resistance to the strain. On the other hand, if the
researcher considers factors such as genetic makeup and ethnicity, he may find that a sample size selected
using these characteristics may not be resistant to the strain. Hence, one cannot assume a normal distribution.
This method is useful when the data has no clear numerical interpretation and is best to use with data that has
a ranking of sorts. For example, a personality assessment test may have a ranking of its metrics set as strongly
disagree, disagree, indifferent, agree, and strongly agree. In this case, nonparametric methods should be used.

3
Certain assumptions are associated with most non- parametric statistical tests,
namely:

1. That the observations are independent;

2. The variable under study has underlying continuity;

3. Non-parametric procedures lest different hypothesis about population than do parametric procedures;

4. Unlike parametric tests, there are non-parametric tests that may be applied appropriately to data measured
in an ordinal scale, and others to data in a nominal or categorical scale.

4
 CHI SQUARE TEST
• The Chi-square statistic is a non-parametric (distribution free) tool designed to analyze
group differences when the dependent variable is measured at a nominal level. Like all
non-parametric statistics, the Chi-square is robust with respect to the distribution of the
data.
• Specifically, it does not require equality of variances among the study groups or
homoscedasticity in the data. It permits evaluation of both dichotomous independent
variables, and of multiple group studies.
• Unlike many other non-parametric and some parametric statistics, the calculations
needed to compute the Chi-square provide considerable information about how each of
the groups performed in the study. This richness of detail allows the researcher to
understand the results and thus to derive more detailed information from this statistic
than from many others.

5
Table 1
Results of the vaccination program.

Health Outcome Unvaccinated Vaccinated

Sick with 23 5
pneumococcal
pneumonia
Sick with non- 8 10
pneumococcal
pneumonia
No pneumonia 61 77

6
7
TEST FOR RANDOMNESS

RUN RANDOMNESS:-
It is the lack of pattern. A Random sequences of event has no order and those not
follow an not explainable
RUN:-
A Sequence of like elements that are preceded and followed by different elements
or no elements are all.

8
The following example

Observer is notices the gender of people enter the restaurant. In restaurant 45 people enter.
M M F M F F FM M M M F F F M M F F F M M M M M F F M M M F F F M F F F F F M M F F F F F
Now we will underline the sequences in this example and find out value of “R”
The total number of runs is 16 as shown by the lines below the randomness
n (total size of the sample)=45
n1 (number of males in the sample)=20
n2(number of females in the sample)=25
r (number of run)=16

9
SIGN TEST
The Sign test is a non-parametric test that is used to test whether or not two
groups are equally sized. The sign test is used when dependent samples are ordered
in pairs, where the bivariate random variables are mutually independent It is based
on the direction of the plus and minus sign of the observation, and not on their
numerical magnitude. It is also called the binominal sign test, with p = .5.. The sign
test is considered a weaker test, because it tests the pair value below or above the
median and it does not measure the pair difference.
• ONE SAMPLE SIGN TEST
• TWO SAMPLE SIGN TEST

10
One Sample Sign Test

Data is non-normally distributed, even after long transforming. This test makes no
assumption about the shape of the population distribution, therefore this test can
handle a data set that is non-symmetric that is skewed either to the left or the
right.
The sign test simple computes a significance test of a hypothesized median value
for a single data set.

11
12
Two sample sign test
Two Sample Sign Test

The two sampled paired sign test is used to test the null hypothesis that the
probability of a random value from the population of the paired differences being
above the specified value is equal to the probability of random value being above
the specified value.

13
14
15
MANN WHITNEY U TEST
• Mann Whitney U Test is a non parametric alternative test to the independent
sample test.
• It is used to compare 2 sample means that come from same population, and to
check whether 2 sample means are equal or not.
• This test is used when the assumption of t- test are not equal.

APLICATIONS
• It is used in every field but frequently it is used more in psychology, healthcare,
nursing, business.
• In psychology it is used to compare attitude or behavior.
• In medicine, it is used to know the effect of 2 medicines are equal or not.
16
Calculation

17
 WILCOXON SIGNED RANK TEST FOR PAIRED
SAMPLES
• The Mann-Whitney U test just discussed assumed that the two samples are
independent. However, there are instances when the samples data consists of
paired observations
• The Wilcoxon signed-rank test is a non-parametric statistical hypothesis test used
to compare two related samples, matched samples, or repeated measurements
on a single sample to assess whether their population mean ranks differ (i.e. it is a
paired difference test). It can be used as an alternative to the paired Student's t-
test (also known as "t-test for matched pairs" or "t-test for dependent samples")
when the population cannot be assumed to be normally distributed. A Wilcoxon
signed-rank test is a nonparametric test that can be used to determine whether
two dependent samples were selected from populations having the same
distribution.

18
• In the pre-post analysis
• I D = pre - post
• I Retain the sign of D ( +/-)
• I Rank = rank of |D| (absolute value of D)
• I Signed rank, SR = Sign * Rank
• I Base analyses on SR
• I Observations with zero differences are ignored
• I Example: A pre-post study

19
 The Kruskal –Wallis Test
Procedure
• 1)Obtain random samples of size n1,….,n2 from each of the k population.
Therefore the total; sample size is n=n1+n2…….+nk
• 2)Pool all the samples and rank them, with the lowest score receiving a rank of 1.
• 3)Let r1=the total of the rank from the ith sample.
• Kruskal Wallis test uses the x2 to the null hypothesis. The test statistic is given,

20
• Three machines are used in the packaging of 10kg of when flour each machine is
designed so as to pack on average 10kg of flour per bag samples of six bags were
selected from each machine and the amount of where packaged in each bag is
show below

Machine 1 15.8 15.9 16.2 15.7 16.3 15.1

Machine 2 16.5 16 15.4 15.9 16.2 16.1

Machine 3 15.7 16.4 16.2 15.9 15.7 16.3

21
Machine 1 15.8 15.9 16.2 15.7 16.3 15.1

Machine 2 16.5 16 15.4 15.9 16.2 16.1

Machine 3 15.7 16.4 16.2 15.9 15.7 16.3

22
Key Takeaways

•Nonparametric statistics are easy to use but do not offer the

pinpoint accuracy of other statistical models.
•This type of analysis is best suited when considering the order
of something, where even if the numerical data changes, the
results will likely stay the same.

23
THANKYOU!

24