14. Statistical Techniques in Business & Economics (16)

16 ­ © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. 16 ­ 2 When you have completed this chapter, you will be able to:. 1. Conduct the sign test for single and dependent samples . using the binomial and standard normal distributions . as the test statistics 2. Conduct a test of hypothesis for dependent samples . using the Wilcoxon signed­rank test 3. Conduct and interpret the Wilcoxon rank­sum test . for independent © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. 16 ­ 3. 4. Conduct and interpret the . Kruskal­Wallis test . for several independent samples . Compute and interpret . 5 Spearman’s coefficient of rank correlation. 6. Conduct a test of hypothesis to determine . whether the correlation among the ranks . in the population is . different from zero Copyright © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. Terminology. 16 ­ 4. Range. is the difference between the . is the difference between the. largest and the . largest and the smallest value . smallest value . Only two values are used in its calculation. Only two values are used in its calculation. It is influenced by an extreme value. It is influenced by an extreme value. It is easy to compute and understand. It is easy to compute and © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. 16 ­ 5. The Sign Test. The Sign Test is based on the sign of a . difference between two related observations . no assumption is necessary regarding the shape . of the population of differences. the binomial distribution is the test statistic for . small samples and the standard normal (z) for . large samples. the test requires dependent (related) samplesCopyright © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. 16 ­ 6. The Sign Test continued Procedure to conduct the test:. Determine the sign of the . Determine the sign of the . difference . difference . between related pairs.