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University of Southeastern Philippines: Business Statistics
University of Southeastern Philippines: Business Statistics
University of Southeastern Philippines: Business Statistics
Obrero Campus
Davao City
BA2002
Business Statistics
WILCOXON SIGNED RANKS TEST
“Definition and examples using manual computation and SPSS.”
Submitted to
Dr. Nelson Faustino
Submitted by
Group 2
Leonardo C. Remulta III
Axl John Alarin
Cyrus Oliver Sanoy
Chesa Marie Arias Montizo
Micah Tabudlong
THE WILCOXON SIGNED RANKS TEST
A non-parametric test used to analyze data from a repeated measures
designed with two conditions. This test for median difference requires that
the differences are approximately symmetric and that the data are measured
on an ordinal, interval, or ratio scale.
Moreover, it is appropriate to use this test when the data do not meet
the requirements for a parametric tests, that is the data are not normally
distributed, the variances for two conditions are significantly different, and
measurements are on an ordinal scale.
Steps in computing the Wilcoxon Signed Ranks Test Statistics, W
1. For each item in a sample of n items, compute the difference score, Di,
between the two paired values.
2. Disregard the + and - signs and list the set of n absolute differences,
|Di|.
3. Omit any absolute difference score of zero from further analysis,
thereby yielding a set of n’ nonzero absolute difference scores, where
n’<n . After you remove values with absolute difference scores of zero, n’
becomes the actual sample size.
4. Assign ranks Ri from 1 to n’ to each of the |D
i| such that the smallest
absolute difference score gets rank 1 and the largest gets rank n’. If two
or more |Di| are equal, assign each of them the mean of the ranks they
would have been assigned individually had ties in the data not
occurred.
5. Reassign the symbol or to each of the ranks, depending on whether
was originally positive or negative.
6. Compute the Wilcoxon test statistic, W, as the sum of the positive
ranks.
n′
W = ∑ Ri(+)
i=1
Note: Null and alternative hypothesis for the Wilcoxon Test.
n′(n′+1)
Because the sum of the first n’ integers (1, 2, . . . , n’) equals 2 , the
Wilcoxon test statistic, W, ranges from a minimum of 0 (where all the
n′(n′+1)
difference scores are negative) to a maximum of 2 (where all the
difference scores are positive). If the null hypothesis is true, the test statistic
n′(n′+1)
W is expected to be close to its mean, W = 4 . If the null hypothesis is
false, the value of the test statistic is expected to be close to one of the
extremes.
Table. 1: Lower and Upper Critical Values, W, of Wilcoxon Signed Ranks Test
Use Table 1 to find the critical values of the test statistics W for both
one- and two-tail tests for sample of n’ < 20.
Fig. 1: Regions of Rejection and Non-rejection using Wilcoxon Signed Ranks Test
For a two-tail test, you reject the null hypothesis (Panel A of Figure 1) if
the computed W test statistic equals or is greater than the upper critical
value or is equal to or less than the lower critical value. For a one-tail test in
the lower tail, you reject the null hypothesis if the computed W test statistic is
less than or equal to the lower critical value (Panel B of Figure 12.20). For a
one-tail test in the upper tail, the decision rule is to reject the null hypothesis
if the computed W test statistic equals or is greater than the upper critical
value (Panel C of Figure 12.20).
However, for samples of n’ > 20, the test statistic W is approximately
normally distributed with the mean W and standard deviation W .
Hence, it is peremptory to use the large-sample approximation formula
when sample sizes are outside the range presented in Table 1.
W− ′ ′
n; (n +1)
Z ST AT = 4
n′(n′+1)(2n′+1)
√ 24
You reject the null hypothesis if the computed Z ST AT test statistic falls in the
rejection region. The region of rejection used depends on the level of
significance and whether the test is one-tail or two-tail.
SAMPLE PROBLEM
Nine experts rated to brands of Colombian Coffee in a taste-testing
experiment. A rating on a 7-point scale (1 = extremely unpleasing, 7 =
extremely pleasing) is given for each of the four characteristics: taste, aroma,
richness, and acidity. The data below shows the summated ratings -
accumulated over all four characteristics.
Brand
Expert
A B
C.C. 24 26
S.E. 27 27
E.G. 19 22
B.L. 24 27
C.M. 22 25
C.N. 26 27
G.N. 27 26
R.M. 25 27
P.V. 22 23
At the 0.05 level of significance, is there evidence of a difference in the
median of summated rating between brand A and brand B?
MANUAL COMPUTATION AND SPSS RESULTS
I. Problem
Is there a significant difference in the observed difference between
brand A and brand B?
II. Hypothesis
Ho: There is no significant difference in the observed difference
between brand A and brand B.
Ho: M D = 0
H1: There is a significant difference in the observed difference between
brand A and brand B.
Ho: M D =/ 0 (two-tail test)
III. Level of Significance
Level of significance, 𝜶, is 0.05.
IV. Statistical Tool
Using Wilcoxon Signed Ranks Test
❖ Manual Computation
➢ Steps 1 and 2
Brand
Expert
A B Di |Di|
C.C. 24 26 -2 2
S.E. 27 27 0 0
E.G. 19 22 -3 3
B.L. 24 27 -3 3
C.M. 22 25 -3 3
C.N. 26 27 -1 1
G.N. 27 26 1 1
R.M. 25 27 -2 2
P.V. 22 23 -1 1
➢ Steps 3 to 5
Brand
Expert
A B Di |Di|
Ri Sign of Di
C.C. 24 26 -2 2 4.5 -
E.G. 19 22 -3 3 7 -
B.L. 24 27 -3 3 7 -
C.M. 22 25 -3 3 7 -
C.N. 26 27 -1 1 2 -
G.N. 27 26 1 1 2 +
R.M. 25 27 -2 2 4.5 -
P.V. 22 23 -1 1 2 -
n=8
➢ Step 6
n′
W = ∑ Ri(+) = 2
i=1
From Table 1 of this paper, with a level of significance, 𝜶, equals to 0.05
(𝜶=0.05) and n = 8, the lower and upper critical values, W, of Wilcoxon
Signed Ranks Test for two-tailed test are 3 and 33 respectively.
❖ Using SPSS
➢ Step 1: Input Data
■ Variable View
■ Data View
➢ Step 2: Select “2 Related Samples” under the Non-parametric
Tests
➢ Step 3: Enter the 1st variable to “Variable1” and the 2nd variable to
“Variable2”
➢ Step 4: Check “Wilcoxon” checkbox and click “Ok”
➢ Step 5: Results
V. Decision Rule
❖ Manual Computation
If the computed test statistics, W, is greater than or equal to the
upper critical value or less than or equal to the lower critical value,
reject the null hypothesis, Ho, and accept the alternative hypothesis, H1.
If not, otherwise.
❖ Using SPSS
➢ If the Asymp. Sig. value is less than of equal the level of
significance, 𝜶, of 0.05, reject the null hypothesis, Ho, and accept
the alternative hypothesis, H1. If not, otherwise.
VI. Conclusion
❖ Manual Computation
Since the computed test statistics, W, of 2 is less than the lower
critical value of 3, we reject the null hypothesis and accept the
alternative hypothesis.
❖ Using SPSS
Since the resulting Asymp. Sig. value of 0.023 from SPSS is less
than the level of significance, 𝜶, of 0.05, we reject the null hypothesis,
Ho, and accept the alternative hypothesis, H1. If not, otherwise.
Thus, the test shows that there is a significant difference in the
observed difference between brand A and brand B. Moreover, the
resulting mean ranks of 2 (negative ranks) vs. 4.86 (positive ranks)
indicates that brand B is most likely to be selected over Brand A.