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    Non Parametric

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    Ashish Banga
    Nonparametric statistics tests do not assume a specific distribution of the underlying population data like the normal distribution. This allows them to handle small sample sizes without assumptions about the original distribution. The Wilcoxon rank sum test compares whether one category ranks significantly higher or lower than another for ordinal data. It ranks all data points from both categories together and tests if the ranks of one category are equally distributed among all ranks under the null hypothesis. An example compares the annual costs of foreign and domestic cars, ranking the costs and finding the rank sum of foreign cars is not small enough to reject the null hypothesis that the ranks are equally distributed between the two categories.

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    Non Parametric

    Uploaded by

    Ashish Banga
    9 views7 pages
    Nonparametric statistics tests do not assume a specific distribution of the underlying population data like the normal distribution. This allows them to handle small sample sizes without assumptions about the original distribution. The Wilcoxon rank sum test compares whether one category ranks significantly higher or lower than another for ordinal data. It ranks all data points from both categories together and tests if the ranks of one category are equally distributed among all ranks under the null hypothesis. An example compares the annual costs of foreign and domestic cars, ranking the costs and finding the rank sum of foreign cars is not small enough to reject the null hypothesis that the ranks are equally distributed between the two categories.

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    Nonparametric statistics tests do not assume a specific distribution of the underlying population data like the normal distribution. This allows them to handle small sample sizes without assumptions about the original distribution. The Wilcoxon rank sum test compares whether one category ranks significantly higher or lower than another for ordinal data. It ranks all data points from both categories together and tests if the ranks of one category are equally distributed among all ranks under the null hypothesis. An example compares the annual costs of foreign and domestic cars, ranking the costs and finding the rank sum of foreign cars is not small enough to reject the null hypothesis that the ranks are equally distributed between the two categories.

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    9 views7 pages

    Non Parametric

    Uploaded by

    Ashish Banga
    Nonparametric statistics tests do not assume a specific distribution of the underlying population data like the normal distribution. This allows them to handle small sample sizes without assumptions about the original distribution. The Wilcoxon rank sum test compares whether one category ranks significantly higher or lower than another for ordinal data. It ranks all data points from both categories together and tests if the ranks of one category are equally distributed among all ranks under the null hypothesis. An example compares the annual costs of foreign and domestic cars, ranking the costs and finding the rank sum of foreign cars is not small enough to reject the null hypothesis that the ranks are equally distributed between the two categories.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    Download as ppt, pdf, or txt
    of 7

    Nonparametric statistics

    Nonparametric?
    • What are they? Tests that don’t assume
    data is normal, or t-distributed, or χ2, or ...
    – so they don’t involve the “parameters” like
    mean and std dev of population distribution
    • Why bother? Can handle small samples
    without assuming something about the
    original data distribution.
    – (Recall normal distribution comes from
    averages of large samples)
    Wilcoxon rank sum test
    • Two categories; want to know whether one
    ranks significantly differently from (higher
    or lower than) the other.
    – so it can handle ordinal data
    • Suppose data from n samples, each in
    one of the two categories, is ranked 1-st,
    2-nd, 3-rd, ..., n-th.
    • H0: Categories are equally distributed
    among ranks
    – so if k of data are in cat 1, then expect rank
    sum k(avg(1,2,...n)) of cat 1’s.
    (Side issue)
    • Text starts with, instead of rank sum for
    category 1’s, difference between avg
    ranks of cat 1’s and cat 2’s.
    • This is equivalent, because sum of all
    ranks is constant, so from sum of cat 1’s
    ranks, we can figure out avg ranks of cat
    1’s and cat 2’s, and hence difference.
    Wilcoxon example
    • Are foreign cars cheaper to run than
    domestic? Annual costs for seven cars
    are listed: (foreign, domestic)
    • 2000, 2200, 2200, 2400, 2700, 3200, 7000
    • ranks: 1,2.5,4 (2.5,5,6,7)
    • rank sum W (of foreign): 7.5
    • From software: Assuming all choices of 3
    ranks out of 7 are foreign, P(W≤7.5) is not
    < 5%, so even with 1-sided test, do not
    reject H0.
    – Apparently Excel doesn’t know Wilcoxon test
    Remarks on example
    • Includes how to handle rank ties
    • Shows how outlier (7000), which would
    throw off means and std devs, becomes
    just one datum with high rank

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