Non-Parametric Statistics

Nonparametric
Statistics
Part of the slides taken from: Statistics for Business and

Economics
© 2011 Pearson Education, Inc

Content
14.1 Introduction: Distribution-Free Tests
14.2 Single Population Inferences
14.3 Comparing Two Populations:
Independent Samples
14.4 Comparing Two Populations: Paired
Difference Experiment
14.5 Comparing Three or More Populations:
Completely Randomized Design
Content
14.6 Comparing Three or More Populations:
Randomized Block Design
14.7 Rank Correlation

Learning Objectives
• Develop the need for inferential techniques

that require fewer, or less stringent,
assumptions than the methods of earlier
chapters
• Introduce nonparametric tests that are based
on ranks (i.e., on an ordering of the sample
measurements according to their relative
magnitudes)
14.1
Introduction:
Distribution-Free Tests

Parametric Test Procedures
• Involve population parameters
— Example: population mean
• Require interval scale or ratio scale

— Whole numbers or fractions
— Example: height in inches (72, 60.5, 54.7)
• Have stringent assumptions

— Example: normal distribution
• Examples: z-test, t-test, F-test, 2-test

Nonparametric Test
Procedures
• Do not involve population parameters
— Example: probability distributions, independence
• Data measured on any scale
— Ratio or interval
— Ordinal
 Example: good-better-best
— Nominal
 Example: male-female
• Example: Wilcoxon rank sum test
Nonnormal Distributions -
t-Statistic is Invalid

Distribution-free tests are statistical tests that do
not rely on any underlying assumptions about the
probability distribution of the sampled population.
The branch of inferential statistics devoted to
distribution-free tests is called nonparametrics.
Nonparametric statistics (or tests) based on the
ranks of measurements are called rank statistics
(or rank tests).

Advantages of
Nonparametric Tests
• Used with all scales
• Easier to compute
— Developed originally before wide
computer use
• Make fewer assumptions
• Need not involve population
parameters
• Results may be as exact as
parametric procedures © 1984-1994 T/Maker Co.

Disadvantages of
Nonparametric Tests
• May waste information
— If data permit using parametric © 1984-1994 T/Maker Co.
procedures
— Example: converting data from
ratio to ordinal scale
• Difficult to compute by hand for
large samples
• Tables not widely available

Frequently Used
Nonparametric Tests
• Sign Test
• Wilcoxon Rank Sum Test
• Wilcoxon Signed Rank Test
• Kruskal Wallis H-Test
• Spearman’s Rank Correlation
Coefficient

14.2
Single Population Inferences

Sign Test
• Tests one population median,  (eta)

• Corresponds to t-test for one mean
• Assumes population is continuous
• Small sample test statistic: Number of sample
values above (or below) median
— Alternative hypothesis determines
• Can use normal approximation if n 30

Sign Test Uses p-Value
to Make Decision
P(X) Binomial: n = 8 p = 0.5
30% .273
.219 .219
20%
.109 .109
10%
.031 .031
.004 .004
0%
0 1 2 3 4 5 6 7 8 X
P-value is the probability of getting an observation at least as

extreme as we got. If 7 of 8 observations ‘favor’ Ha, then
p-value = p(x  7) = .031 + .004 = .035.
If  = .05, then reject ©H2011
0 since p-value  .
Pearson Education, Inc
Sign Test for a Population
Median 
One-Tailed Test
H0:  = 0
Ha:  > 0 [or Ha:  < 0 ]
Test statistic:
S = Number of sample measurements greater than0
[or S = number of measurements less than 0]

Median 
Observed significance level:
p-value = P(x ≥ S)
where x has a binomial distribution with
parameters n and p = .5
(Use Table II, Appendix B)
Rejection region: Reject H0 if p-value ≤ .05

Median 
Two-Tailed Test
H0:  = 0
Ha:  ≠ 0
Test statistic:
S = Larger of S1 and S2, where S1 is the number of
sample measurements less than0 and S2 is the
number of measurements greater than 0
Median 
Observed significance level:
p-value = 2P(x ≥ S)
where x has a binomial distribution with
parameters n and p = .5
(Use Table II, Appendix B)
Rejection region: Reject H0 if p-value ≤ .05

Conditions Required for Valid
Application of the Sign Test
The sample is selected randomly from a
continuous probability distribution.
[Note: No assumptions need to be made about the
shape of the probability distribution.]

Large Sample Sign Test for a
Population Median 
One-Tailed Test
H0:  = 0
Ha:  > 0 [or Ha:  < 0 ]
( S −.5) −.5n
Test statistic: z =
.5 n
S = Number of sample measurements greater
than0 [or S = number of measurements less than
0] The “– .5” is the “correction for continuity.”
The null hypothesized mean value is np = .5n,
and the standard deviation is
npq = n (.5) (.5) = .5 n
Rejection region: z > z

where tabulated z-values can be found in Table
IV of Appendix B.

Two-Tailed Test
H0:  = 0
Ha:  ≠ 0
( S −.5) −.5n
Test statistic: z =
.5 n
S = Larger of S1 and S2, where S1 is the number of

sample measurements less than0 and S2 is the
number of measurements greater
© 2011 Pearson Education, Inc than 0
The null hypothesized mean value is np = .5n,
and the standard deviation is
npq = n (.5) (.5) = .5 n
Rejection region: z > z

where tabulated z-values can be found in Table
IV of Appendix B.

Sign Test Example
You’re an analyst for Chef-Boy-
R-Dee. You’ve asked 7 people
to rate a new ravioli on a 5-
point Likert scale (1 = terrible to
5 = excellent). The ratings are:
2 5 3 4 1 4 5
At the .05 level of significance,
is there evidence that the
median rating is less than 3?

Sign Test Solution
• H0:  = 3 p-value:
• Ha:  < 3 P(x  2) = 1 – P(x  1)
= .937
•  = .05
(Binomial Table, n = 7,
• Test Statistic: p = 0.50)
S=2
(Ratings 1 & 2 are Decision:
Do not reject at  = .05
less than  = 3:
2, 5, 3, 4, 1, 4, 5) Conclusion:
There is no evidence
median is less than 3
14.3
Comparing Two Populations:

Independent Samples

Wilcoxon Rank Sum Test
• Tests two independent population probability

distributions
• Corresponds to t-test for two independent means
• Assumptions
— Independent, random samples
— Populations are continuous
• Can use normal approximation if ni  10

Wilcoxon Rank Sum Test:
Independent Samples
Let D1 and D2 represent the probability distributions
for populations 1 and 2, respectively.
One-Tailed Test
H0: D1 and D2 are identical
Ha: D1 is shifted to the right of D2
[or D1 is shifted to the left of D2]
Test statistic:
T1, if n1 < n2; T2, if n2 < n1
(Either rank sum can© 2011be used
Pearson ifIncn1 = n2.)
Education,
Independent Samples
Rejection region:
T1: T1 ≥ TU [or T1 ≤ TL]
T2: T2 ≤ TL [or T2 ≥ TU]
where TL and TU are obtained from Table XIV of
Appendix B
Ties: Assign tied measurements the average of the ranks

they would receive if they were unequal but occurred in
successive order. For example, if the third-ranked and
fourth-ranked measurements are tied, assign each a rank of
(3 + 4)/2 = 3.5 © 2011 Pearson Education, Inc
Independent Samples
Let D1 and D2 represent the probability
distributions for populations 1 and 2, respectively.
Two-Tailed Test
Ha: D1 is shifted to the left or to the right of D2
Test statistic:
T1, if n1 < n2; T2, if n2 < n1
(Either rank sum can be used if n1 = n2.) We will
denote this rank sum© 2011 as T.Education, Inc
Pearson
Independent Samples
Rejection region:
T ≤ TL or T ≥ TU
where TL and TU are obtained from Table XIV of
Appendix B

fourth-ranked measurements are tied, assign each a rank
of (3 + 4)/2 = 3.5
Conditions Required for Valid
1. The two samples are random and independent.
2. The two probability distributions from which
the samples are drawn are continuous.

Procedure
1. Assign ranks, Ri, to the n1 + n2 sample
observations
• If unequal sample sizes, let n1 refer to smaller-
sized sample
• Smallest value = 1
• Average ties
2. Sum the ranks, Ti, for each sample

3. Test statistic is Ti (smallest sample)
Example
You’re a production planner. You want to see if
the operating rates for two factories is the same.
For factory 1, the rates (% of capacity) are 85,
82, 94, and 97. For factory 2, the rates are 71,
82, 77, 92, and 88 . Do the factory rates have
the same probability distributions at the
.10 level of significance?

Solution
• H0: Identical Distrib.
• Ha: Shifted Left or Right
•  = .10
• n =4
1 n 5=
2
• Critical Value(s):

Wilcoxon Rank Sum
Table (Portion)
 = .05 one-tailed;  = .10 two-tailed
n1
3 4 5 ..
TL TU TL TU TL TU ..
3 6 15 7 17 7 20 ..
n2 4 7 17 12 24 13 27 ..
5 7 20 13 27 19 36 ..
: : : : : : : :
Solution
• Ha: Shifted Left or Right
•  = .10
• n1 = 4 n2 = 5
Reject Do Not Reject
H0 Reject H0 H0
13 27  Ranks
Computation Table
Factory 1 Factory 2
Rate Rank Rate Rank
85 5 71 1
82 3 3.5 82 4 3.5
94 8 77 2
97 9 92 7
... 88 6
Rank Sum 25.5 19.5

Solution
• H0: Identical Distrib. Test Statistic:
• Ha: Shifted Left or Right T1 = 5 + 3.5 + 8+ 9 = 25.5
(Smallest sample)
•  = .10
• n1 = 4 n2 = 5
• Critical Value(s): Decision:
Do not reject at  = .10
Reject Do Not Reject
H0 Reject H0 H0 Conclusion:
There is no evidence
13 27  Ranks
distrib.
© 2011 Pearson Education, Inc are not identical
Wilcoxon Rank Sum Test for Large
Samples (n1 ≥ 10 and n2 ≥ 10)
Let D1 and D2 represent the probability distributions for

populations 1 and 2, respectively.
One-Tailed Test

n1 ( n1 + n2 + 1)
T1 −
2
Test statistic: z =
n1n2 ( n1 + n2 + 1)
12
Rejection region:
z > z (or z < –z)

Two-Tailed Test
Ha: D1 is shifted to the right or to the left of D2

n1 ( n1 + n2 + 1)
T1 −
2
Test statistic: z =
n1n2 ( n1 + n2 + 1)
12
Rejection region:
| z | > z/2
14.4
Comparing Two Populations:

Paired Differences Experiment

Wilcoxon
Signed Rank Test
• Tests probability distributions of two related
populations
• Corresponds to t-test for dependent (paired) means
• Assumptions
— Random samples
— Both populations are continuous
• Can use normal approximation if n  25

Wilcoxon Signed Rank Test for a
Paired Difference Experiment

One-Tailed Test
Calculate the difference within each of the n

matched pairs of observations. Then rank the
absolute value of the n differences from the
smallest (rank 1) to the highest (rank n) and
calculate the rank sum T– of the negative
differences and the rank sum T+ of the positive
differences. [Note: Differences equal to 0 are
eliminated, and the number n of differences is
reduced accordingly.]
Test statistic:
T–, the rank sum of the negative differences [or T+,
the rank sum of the positive differences] Rejection
region:
T– ≤ T0 [or T+ ≤ T0]
where T0 is given in Table XV of Appendix B

Two-Tailed Test

Calculate the difference within each of the n

matched pairs of observations. Then rank the
absolute value of the n differences from the
smallest (rank 1) to the highest (rank n) and
calculate the rank sum T– of the negative
differences and the rank sum T+ of the positive
differences. [Note: Differences equal to 0 are
eliminated, and the number n of differences is
reduced accordingly.]
Test statistic:
T–, the rank sum of the negative differences [or T+,
the rank sum of the positive differences] Rejection
region:
T ≤ T0
where T0 is given in Table XV of Appendix B
Conditions Required for a
Valid Signed Rank Test
1. The sample of differences is randomly
selected from the population of differences.
2. The probability distribution from which the
sample of paired differences is drawn is
continuous.

Signed Rank Test
Procedure
1. Obtain difference scores, Di = X1i – X2i
2. Take absolute value of differences, |Di|
3. Delete differences with 0 value
4. Assign ranks, Ri, where smallest = 1
5. Assign ranks same signs as Di
6. Sum ‘+’ ranks (T+) and ‘–’ ranks (T–)
1. Test statistic is T– or T+ (one-tail test)
2. Test statistic is T = smaller of T– or T+ (two-tail test)

Signed Rank Test
Computation Table
X1i X2i Di = X1i - X2i |Di| Ri Sign Sign Ri
X11 X21 D1 = X11 - X21 |D1| R1 ± ± R1
X12 X22 D2 = X12 - X22 |D2| R2 ± ± R2
X13 X23 D3 = X13 - X23 |D3| R3 ± ± R3
: : : : : : :
X1n X2n Dn = X1n - X2n |Dn| Rn ± ± Rn
Total T+ & T–
Signed Rank Test
Example
You work in the finance department. Is the new
financial package faster (α = .05)? You collect the
following data entry times:
User Current New
Donna 9.98 9.88
Santosha 9.88 9.86
Sam 9.90 9.83
Tamika 9.99 9.80
Brian 9.94 9.87
Jorge 9.84 9.84
© 2011 Pearson Education, Inc © 1984-1994 T/Maker Co.

Signed Rank Test
Solution
• Ha: Current Shifted
Right
•  = .05
• n' =

Signed Rank Test
Computation Table
X1i X2i Di |Di | Ri Sign Sign Ri
9.98 9.88 +0.10 0.10 4 + +4
9.88 9.86 +0.02 0.02 1 + +1
9.90 9.83 +0.07 0.07 2 2.5 + +2.5
9.99 9.80 +0.19 0.19 5 + +5
9.94 9.87 +0.07 0.07 3 2.5 + +2.5
9.84 9.84 0.00 0.00 ... ... Discard
Total T+= 15, T–= 0
Signed Rank Test
Solution
• Ha: Current Shifted
Right
•  = .05
• n' = 5 (not 6; 1 elim.)

Wilcoxon Signed Rank
Table (Portion)
One-Tailed Two-Tailed n=5 n=6 n=7 ..
 = .05  = .10 1 2 4 ..
 = .025  = .05 1 2 ..
 = .01  = .02 0 ..
 = .005  = .01 ..
n = 11 n = 12 n = 13
: : : :
Signed Rank Test
Solution
Test Statistic:
• Ha: Current Shifted T– = 0
Right
•  = .05
• n' = 5 (not 6; 1 elim.)
• Critical Value(s): Decision:
Reject at  = .05
Reject Do Not
H0 Reject Conclusion:
H0 There is evidence new
1 T0 package
© 2011 Pearson Education, Inc is faster
Wilcoxon Signed Rank Test for
Large Samples (n ≥ 25)

One-Tailed Test
T+ −⎡ ⎣n ( n + 1) 4 ⎤
⎦
Test statistic: z =
n ( n + 1) ( 2 n + 1) 24
Rejection region:
z > z [or z < –z ]

Assumptions:
The sample size n is greater than or equal to 25.
Differences equal to 0 are eliminated, and the
number n of differences is reduced accordingly.
Tied absolute differences receive ranks equal to
the average of the ranks they would have
received had they not been tied.

Wilcoxon Signed Rank Test for
Large Samples (n ≥ 25)

Two-Tailed Test

T+ −⎡ ⎣n ( n + 1) 4 ⎤
⎦
Test statistic: z =
n ( n + 1) ( 2 n + 1) 24
Rejection region:
| z | > z

Assumptions:
The sample size n is greater than or equal to 25.
Differences equal to 0 are eliminated, and the
number n of differences is reduced accordingly.
Tied absolute differences receive ranks equal to
the average of the ranks they would have
received had they not been tied.

14.5
Comparing Three or More

Populations:
Completely Randomized Design

Kruskal-Wallis H-Test
• Tests the equality of more than two (p)
population probability distributions
• Corresponds to ANOVA for more than two
means
• Used to analyze completely randomized
experimental designs
• Uses 2 distribution with p – 1 df
— if sample size nj ≥ 5
Kruskal-Wallis H-Test for
Comparing k Probability
Distributions
H0: The k probability distributions are identical

Ha: At least two of the k probability distributions differ
in location.
12 2
Test statistic: H=
n ( n + 1)
∑ n j( R j − R )

Distributions
where
nj = Number of measurements in sample j
Rj = Rank sum for sample j, where the rank of
each measurement is computed according to
its relative magnitude in the totality of data
for the k samples
Rj = Rj/nj = Mean rank sum for jth sample
R = Mean of all ranks = (n + 1)/2
n = Total sample ©size = nEducation,
2011 Pearson
1 + nInc2 + . . . + nk
Distributions
Rejection region:
2
H > χα with (k – 1) degrees of freedom

fourth-ranked measurements are tied, assign each a rank
of (3 + 4)/2 = 3.5. The number should be small relative
to the total number of observations.
Conditions Required for the
Validity of the Kruskal-Wallis
H-Test
1. The k samples are random and independent.
2. There are five or more measurements in each
sample.
3. The k probability distributions from which the
samples are drawn are continuous

Procedure
1. Assign ranks, Ri , to the n combined
observations
• Smallest value = 1; largest value = n
• Average ties
2. Sum ranks for each group
3. Compute test statistic Squared total of
each group
⎛ 12 R 2j ⎞
H =⎜ ∑
⎜ n (n + 1) n ⎟ ⎟ − 3 (n + 1)
⎝ j ⎠
Example
As production manager, you Mach1 Mach2 Mach3
want to see if three filling 25.40 23.40 20.00
machines have different 26.31 21.80 22.20
filling times. You assign 15
24.10 23.50 19.75
similarly trained and
experienced workers, 5 per 23.74 22.75 20.60
machine, to the machines. At 25.10 21.60 20.40
the .05 level of significance,
is there a difference in the
distribution of filling times?

Solution
• Ha: At Least 2 Differ
•  = .05
• df = p – 1 = 3 – 1 = 2
 = .05
0 5.991 ©2 2011 Pearson Education, Inc

Solution
Raw Data Ranks
Mach1 Mach2 Mach3 Mach1 Mach2 Mach3
25.40 23.40 20.00
26.31 21.80 22.20
24.10 23.50 19.75
23.74 22.75 20.60
25.10 21.60 20.40

Solution
Raw Data Ranks
25.40 23.40 20.00
26.31 21.80 22.20
24.10 23.50 19.75 1
23.74 22.75 20.60
25.10 21.60 20.40

Solution
Raw Data Ranks
25.40 23.40 20.00 2
26.31 21.80 22.20
24.10 23.50 19.75 1
23.74 22.75 20.60
25.10 21.60 20.40

Solution
Raw Data Ranks
25.40 23.40 20.00 2
26.31 21.80 22.20
24.10 23.50 19.75 1
23.74 22.75 20.60
25.10 21.60 20.40 3

Solution
Raw Data Ranks
25.40 23.40 20.00 14 9 2
26.31 21.80 22.20 15 6 7
24.10 23.50 19.75 12 10 1
23.74 22.75 20.60 11 8 4
25.10 21.60 20.40 13 5 3

Solution
Raw Data Ranks
25.40 23.40 20.00 14 9 2
26.31 21.80 22.20 15 6 7
24.10 23.50 19.75 12 10 1
23.74 22.75 20.60 11 8 4
25.10 21.60 20.40 13 5 3
Total 65 38 17

Solution
⎛ 12 Rj ⎞
2
H =⎜ ∑ ⎟
⎜ n (n + 1) n j ⎟
− 3 (n + 1)
⎝ ⎠
⎛ 12 ⎛ (65 )2 (38 )2 (17 )2 ⎞⎞
=⎜ ⎜ + + ⎟⎟ − 3 (16 )
⎜ (15 )(16 ) ⎜ 5 5 5 ⎟⎟
⎝ ⎝ ⎠⎠
⎛ 12 ⎞
=⎜ ⎟(191.6 ) − 48
⎝ 240 ⎠ 12 2
= 11.58
H=
n ( n + 1)
∑ n j( R j − R )
Solution
Test Statistic:
• Ha: At Least 2 Differ H = 11.58
•  = .05
• df = p – 1 = 3 – 1 = 2
Decision:
Reject at  = .05
 = .05
Conclusion:
There is evidence population
5.991 © 2011 Pearsondistrib.
0 2
Education, Inc are different
14.6
Comparing Three or More

Populations:

Friedman Fr-statistic
• provides another method for testing to detect a

shift in location of a set of k populations that
have the same spread (or, scale)
• is based on the rank sums of the treatments,
measures the extent to which the k samples
differ with respect to their relative ranks within
the blocks

Friedman Fr-Test for a
H0: The probability distributions for the k
treatments are identical
Ha: At least two of the probability distributions
differ in location
12b 2
Test statistic: Fr = k k + 1 ∑( R j −R )
( )

where
b = Number of blocks
k = Number of treatments
Rj = Rank sum of the jth treatment, where the rank
of each measurement is computed relative to
its position within its own block
Test statistic:
2
χα
Fr > with (k – 1) degrees of freedom
Ties: Assign tied measurements the average of
the ranks they would receive if they were
unequal but occurred in successive order. For
example, if the third-ranked and fourth-ranked
measurements are tied, assign each a rank of (3 +
4)/2 = 3.5. The number should be small relative
to the total number of observations.

Friedman Fr -Test Example
Consider the data in the table. A pharmaceutical
firm wants to compare the reaction times of
subjects under the influence of three different
drugs that it produces. Apply the Friedman Fr-
test to the data. What conclusion can you draw?
Test using  = .05.

H0: The population distributions of reaction
times are identical for the three drugs
Ha: At least two of the three drugs have reaction
time distributions that differ in location
From the table: k = 3 treatments, b = 6 blocks,
R1 = 7, R2 = 12, R3 = 17; so R1 = 7 6 = 1.167,
R2 = 12 6 = 2.0, R3 = 17 6 = 2.833; R = ( 3 + 1) 2 = 2.0
12 ( 6 )
H= ⎡(1.167 −2.0 ) + ( 2.0 −2.0 ) + ( 2.833 −2.0 ) ⎤
2 2 2
( 3) ( 4 ) ⎣ ⎦
= 6 (1.388) = 8.33 © 2011 Pearson Education, Inc
For  = .05,  2.05 = 5.99147, therefore
Rejection region: H > 5.99147

Conclusion: Because H = 8.33 exceeds the
critical value of 5.99, we reject the null
hypothesis and conclude that at least two of the
three drugs have distributions of reaction times
that differ in location. That is, at least one of the
drugs tends to yield reaction times that are
faster than the others.

14.7
Rank Correlation

Spearman’s Rank
Correlation Coefficient
• Measures correlation between ranks
• Corresponds to Pearson product moment correlation
coefficient
• Values range from –1 to +1
• Formula (shortcut)
6∑ d i 2
rs = 1− 2
n ( n −1)
di = ui – vi (difference in ranks of ith observation
for samples 1 and 2)
n = number of pairs© of observations
2011 Pearson Education, Inc
Spearman’s Rank Correlation
Procedure
1. Assign ranks, Ri , to the observations of each

variable separately
2. Calculate differences, di , between each pair of ranks
3. Square differences, di2, between ranks
4. Sum squared differences for each variable
5. Use shortcut approximation formula

Spearman’s Rank
Correlation Example
You’re a research assistant for the FBI. You’re
investigating the relationship between a person’s attempts
at deception and percent Subj. Deception
changes in their pupil Pupil
size. You ask subjects
1 87 10
a series of questions,
some of which they 2 63 6
must answer 3 95 11
dishonestly. At the .05 4 50 7
5 correlation
level of significance, what is the 43 coefficient?
0

Spearman’s Rank Correlation
Table
2
Subj. Decep. R1i Pupil R2i di di
1 87 4 10 4 0 0
2 63 3 6 2 1 1
3 95 5 11 5 0 0
4 50 2 7 3 -1 1
5 43 1 0 1 0 0
Σdi2= 2
Spearman’s Rank
Correlation Solution
6∑ di2
rs = 1 −
n (n2 − 1)
6 (2 )
= 1−
5 (5 − 1)
2
= 1 − 0.10
= 0.90
Spearman’s Nonparametric
Test for Rank Correlation
One-Tailed Test
H 0:  = 0
Ha:  > 0 (or Ha:  < 0)
6∑ d i 2
Test statistic: rs = 1− 2
n ( n −1)
Rejection region: rs > rs, or rs <–rs, when s < 0
where rs, is the value from Table XVI corresponding
to the upper-tail area  and n pairs of observations
Ties: Assign tied measurements the average of the

ranks they would receive if they were unequal but
occurred in successive order. For example, if the
third-ranked and fourth-ranked measurements are
tied, assign each a rank of (3 + 4)/2 = 3.5. The
number should be small relative to the total number
of observations.

Two-Tailed Test
H0:  = 0
Ha:  ≠ 0
Test statistic: 6∑ d i 2
rs = 1− 2
n ( n −1)
Rejection region: |rs | > rs,
where rs, is the value from Table XVI corresponding to
the upper-tail area  and n pairs of observations
Ties: Assign tied measurements the average of the

ranks they would receive if they were unequal but
occurred in successive order. For example, if the
third-ranked and fourth-ranked measurements are
tied, assign each a rank of (3 + 4)/2 = 3.5. The
number should be small relative to the total number
of observations.

Conditions Required for a
Valid Spearman’s Test
1. The sample of experimental units on which the

two variables are measured is randomly
selected.
2. The probability distributions of the two
variables are continuous.

Key Ideas
Do not rely on assumptions about the
probability distribution of the sampled
population

Key Ideas
Nonparametrics
Distribution-free tests that are based on rank
statistics
One-sample nonparametric test for the
population median – sign test
Nonparametric test for two independent samples
– Wilcoxon rank sum test
Nonparametric test for matched pairs –
Wilcoxon signed rank test
Key Ideas
Nonparametrics
Nonparametric test for a completely
randomized design – Kruskal-Wallis test
Nonparametric test for a randomized block
design – Friedman test
Nonparametric test for rank correlation –
Spearman’s test

Non-Parametric Statistics

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Non-Parametric Statistics

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Nonparametric

Part of the slides taken from: Statistics for Business and

© 2011 Pearson Education, Inc

© 2011 Pearson Education, Inc

• Develop the need for inferential techniques

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• Require interval scale or ratio scale

• Have stringent assumptions

• Examples: z-test, t-test, F-test, 2-test

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© 2011 Pearson Education, Inc

© 2011 Pearson Education, Inc

© 2011 Pearson Education, Inc

© 2011 Pearson Education, Inc

Single Population Inferences

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• Tests one population median,  (eta)

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P-value is the probability of getting an observation at least as

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Rejection region: Reject H0 if p-value ≤ .05

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Rejection region: Reject H0 if p-value ≤ .05

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© 2011 Pearson Education, Inc

npq = n (.5) (.5) = .5 n

Rejection region: z > z

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S = Larger of S1 and S2, where S1 is the number of

npq = n (.5) (.5) = .5 n

Rejection region: z > z

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© 2011 Pearson Education, Inc

Comparing Two Populations:

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• Tests two independent population probability

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Ties: Assign tied measurements the average of the ranks

Ties: Assign tied measurements the average of the ranks

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2. Sum the ranks, Ti, for each sample

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© 2011 Pearson Education, Inc

© 2011 Pearson Education, Inc

Let D1 and D2 represent the probability distributions for

© 2011 Pearson Education, Inc

Let D1 and D2 represent the probability

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Comparing Two Populations:

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© 2011 Pearson Education, Inc

Let D1 and D2 represent the probability

Calculate the difference within each of the n

Let D1 and D2 represent the probability

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Calculate the difference within each of the n

© 2011 Pearson Education, Inc

© 2011 Pearson Education, Inc

© 2011 Pearson Education, Inc © 1984-1994 T/Maker Co.

© 2011 Pearson Education, Inc

© 2011 Pearson Education, Inc

Let D1 and D2 represent the probability

© 2011 Pearson Education, Inc

© 2011 Pearson Education, Inc