Hypothesis Testing

BUSINESS STATISTICS Nonparametric Testing




10 Nonparametric Methods and Chi-Square Tests (1)
• Using Statistics
• The Sign Test
• The Runs Test - A Test for Randomness
• The Mann-Whitney U Test
• The Wilcoxon Signed-Rank Test




Assoc. Prof. Ho Thanh Phong 10 -1 School of Business – International University

, BUSINESS STATISTICS Nonparametric Testing



10-1 Using Statistics (Parametric Tests)

• Parametric Methods
– Inferences based on assumptions about the
nature of the population distribution
• Usually: population is normal
– Types of tests
• t-test
» Comparing two population means or proportions
» Testing value of population mean or proportion
• ANOVA
» Testing equality of several population means

Assoc. Prof. Ho Thanh Phong 10 -2 School of Business – International University

, BUSINESS STATISTICS Nonparametric Testing



Nonparametric Tests (1)

• Nonparametric Tests
– Distribution-free methods making no
assumptions about the population distribution
– Types of tests
• Sign tests
» Sign Test: Comparing paired observations
» McNemar Test: Comparing qualitative variables
» Cox and Stuart Test: Detecting trend
• Runs tests
» Runs Test: Detecting randomness
» Wald-Wolfowitz Test: Comparing two distributions


Assoc. Prof. Ho Thanh Phong 10 -3 School of Business – International University