Non Parametric Tests

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 Purpose of sign test
Isa simple and versatile test that requires few
assumption.

Itis based on the binomial distribution. The test

involves simple counting the number of positive or
negative sign in sequence of any sign.

A common use to compare two sample of paired

data, as an alternative to the paired t-test using
only the sign of the difference.
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 Sign Test
A common application of the sign test involves using a
sample of n potential customers to identify a
preference for one of two brands of a product.

 The objective is to determine whether there is a

difference in preference between the two items being
compared.

 Torecord the preference data, we use a plus sign if

the individual prefers one brand and a minus sign if
the individual prefers the other brand.

 Because the data are recorded as plus and minus

signs, this test is called the sign test.
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 Example:
Sign Test:
As part of a market research study, a sample of 36
consumers were asked to taste two brands of shoes
and indicate a preference. Do the data shown below
indicate a significant difference in the consumer
preferences for the two brands?
18 preferred brand A (+ sign recorded)
12 preferred brand B (_ sign recorded)
6 had no preference
The analysis is based on a sample size of 18+12= 30

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 Example

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 = 0.5(30)
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Rejection Rule
Using 0.05 level of significance,
Reject H0 if z < -1.96 or z > 1.96

TestStatistic
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 shoes.

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 Wilcoxon Signed-Rank Test
 Thistest is the nonparametric alternative to the
parametric matched -sample test.

 The methodology of the parametric matched-

sample analysis requires:
◦ interval data, and
◦ the assumption that the population of differences
between the pairs of observations is normally
distributed.

 Ifthe assumption of normally distributed

differences is not appropriate, the Wilcoxon signed-
rank test can be used.

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 Wilcoxon Signed-Rank Test
it is One example of non parametric test

TheWilcoxon Signed Rank Sum Test is used

when:
◦ Comparing two populations
◦ Data are continuous, but non-normal
◦ Paired samples

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 Example: Express Deliveries
Wilcoxon Signed-Rank Test
A firm has decided to select one of two express
delivery services to provide next-day deliveries
to the district offices.
To test the delivery times of the two services,
the firm sends two reports to a sample of 10
district offices, with one report carried by one
service and the other report carried by the
second service.

Do the data (delivery times in hours) on the

next slide indicate a difference in the two
services?
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Example: Express Deliveries
District Office Service A Service B
Seattle 32 hrs. 25 hrs.
Los Angeles 30 24
Boston 19 15
Cleveland 16 15
New York 15 13
Houston 18 15
Atlanta 14 15
St. Louis 10 8
Milwaukee 7 9
Denver 16 11
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 Wilcoxon Signed-Rank Test
 Preliminary Steps of the Test
• Compute the differences between the paired observations.

• Discard any differences of zero.

• Rank the absolute value of the differences from lowest to highest.

Tied differences are assigned the average ranking of their
positions.

• Give the ranks the sign of the original difference in the data.

• Sum the signed ranks.

. . . next we will determine whether the sum is significantly
different from zero.
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Example: Express Deliveries
District Office Differ. |Diff.| Rank Sign. Rank
Seattle 7 10 +10
Los Angeles 6 9 +9
Boston 4 7 +7
Cleveland 1 1.5 +1.5
New York 2 4 +4
Houston 3 6 +6
Atlanta -1 1.5 -1.5
St. Louis 2 4 +4
Milwaukee -2 4 -4
Denver 5 8 +8
+44
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 Example: Express Deliveries
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; recommend the one with the
smaller times.
Sampling distribution
Sampling Distribution
of T if populations
are identical
19.62

T = 0
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Example: Express Deliveries
RejectionRule
Using 0.05 level of significance, Reject H0 if
z < -1.96 or z > 1.96

TestStatistic
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 Service B.

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 Mann-Whitney-Wilcoxon Test
Thistest is another nonparametric method for
determining whether there is a difference
between two populations.

This test, unlike the Wilcoxon signed-rank test, is

not based on a matched sample.

This test does not require interval data or the

assumption that both populations are normally
distributed.

The only requirement is that the measurement

scale for the data is at least ordinal.
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Mann-Whitney-Wilcoxon Test

Instead of testing for the difference between

the means of two populations, this method
tests to determine whether the two
populations are identical.
The hypotheses are:

H0: The two populations are identical

Ha: The two populations are not identical

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 Example: Westin Freezers

Mann-Whitney-Wilcoxon Test (Large-Sample

Case)
Manufacturer labels indicate the annual
energy cost associated with operating home
piece of equipment such as freezers.

The energy costs for a sample of 10 Westin

freezers and a sample of 10 Brand-X Freezers
are shown on the next slide.
Do the data indicate, using a = 0.05, that a
difference exists in the annual energy costs
associated with the two brands of freezers?
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Example: Westin Freezers
Westin Freezers Brand-X Freezers
$55.10 $56.10
54.50 54.70
53.20 54.40
53.00 55.40
55.50 54.10
54.90 56.00
55.80 55.50
54.00 55.00
54.20 54.30
55.20 57.00

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Example: Westin Freezers
 Mann-Whitney-Wilcoxon Test (Large-Sample Case)
◦ Hypotheses

H0: Annual energy costs for Westin freezers and

Brand-X freezers are the same.

Ha: Annual energy costs differ for the two brands of

freezers.

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 Mann-Whitney-Wilcoxon Test:

 First,rank the combined data from the lowest to

the highest values, with tied values being
assigned the average of the tied rankings.

 Then, compute T, the sum of the ranks for the

first sample.

 Then,
compare the observed value of T to the
sampling distribution of T for identical populations.

 Thevalue of the standardized test statistic z will

provide the basis for deciding whether to reject H0.

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 Mann-Whitney-Wilcoxon
Test of T for Identical
Sampling Distribution
Populations
◦ Mean

◦
mT = n1(n1 + n2 +1)

◦ Standard Deviation

 T  112n1n2(n1  n2  1)
◦ Distribution Form

Approximately normal, provided

n1 > 10 and n2 > 10
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Example: Westin Freezers
Westin Freezers Rank Brand-X Freezers Rank
$55.10 12 $56.10
19
54.50 8 54.70 9
53.20 2 54.40 7
53.00 1 55.40 14
55.50 15.5 54.10 4
54.90 10 56.00 18
55.80 17 55.50 15.5
54.00 3 55.00 11
54.20 5 54.30 6
55.20 13 57.00 20
Sum of Ranks 86.5 Sum of Ranks
123.5

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Example: Westin Freezers
Mann-Whitney-Wilcoxon Test
◦ Sampling Distribution

Sampling distribution
of T if populations
are identical
13.23

T
T = 105 =1/2(10)(21)

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Example: Westin Freezers
Rejection Rule
Using 0.05 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.
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Kruskal-Wallis Test
 The
Mann-Whitney-Wilcoxon test can be used to test
whether two populations are identical.

 The MWW test has been extended by Kruskal-Wallis

for cases of three or more populations.

 TheKruskal-Wallis test can be used with ordinal data

as well as with interval or ratio data.

 Also,
the Kruskal-Wallis test does not require the
assumption of normally distributed populations.

 The hypotheses are:

H0: All populations are identical

Ha: Not all populations are identical

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Kruskal-Wallis test…
o The Kruskal-Wallis Test was developed by Kruskal
and Wallis (1952) jointly and is named so after them.

o It is the nonparametric alternative to the one-way

analysis of variance (one-way ANOVA) and is used
when the assumptions of ANOVA are not met.

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Kruskal-Wallis test…
o In the ANOVA, we assume that distribution of each group is
normally distributed and there is approximately equal
variance on the scores for each group.

o However, in the Kruskal-Wallis test, we do not have any of

these assumptions.

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Kruskal-Wallis test…
o It is used to compare the distributions of scores on a
quantitative variable obtained from two or more groups.

o Thus, it is applied in the same data situation as an ANOVA

for independent samples, except that it is used when the
data are either importantly non normally distributed, the
measurement scale of the dependent variable is ordinal (not
interval or ratio), or from a too-small sample.

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Kruskal-Wallis test…
o It is used when the populations from which the
samples are drawn are not normally distributed with
equal variances, or when the data for analysis consist
only of ranks

o The Kruskal-Wallis test is a rank-based approach for

three or more unpaired samples

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