Nonparametric Statistics

Learning Objectives
• Recognize the advantages and disadvantages of nonparametric
statistics.
• The signed test for paired data.
• Understand how to use the runs test to test for randomness.
• Know when and how to use the Mann-Whitney U test, the
Wilcoxon matched-pairs signed rank test, the Kruskal-Wallis test,
and the Friedman test.
• Learn when and how to measure correlation using Spearman’s rank
correlation measurement.
 Parametric vs. Nonparametric Statistics

• Parametric Statistics are statistical techniques based on assumptions about the population from which
the sample data are collected.
• Assumption that data being analyzed are randomly
selected from a normally distributed population.
• Requires quantitative measurement that yield interval
or ratio level data.
• Nonparametric Statistics are based on fewer assumptions about the population and the parameters.
• Sometimes called “distribution-free” statistics.
• A variety of nonparametric statistics are available for
use with nominal or ordinal data.
Advantages of Nonparametric Techniques

• Sometimes there is no parametric alternative to the use of nonparametric

statistics.
• Certain nonparametric test can be used to analyze nominal data.
• Certain nonparametric test can be used to analyze ordinal data.
• The computations on nonparametric statistics are usually less complicated than
those for parametric statistics, particularly for small samples.
• Parametric value : 112.5 93.8 76.8 13.67 149.62
• Nonparametric value: 4 3 2 1 5
 Disadvantages of Nonparametric Statistics

• Nonparametric tests can be wasteful of data if parametric tests are available for use with the data.
• Nonparametric tests are usually not as widely available and well know as parametric tests.
• They ignore certain amount of information
• Parametric value : 112.5 93.8 76.8 13.67 149.62 189.6
• Nonparametric value: 4 3 2 1 5 6

• For large samples, the calculations for many nonparametric statistics can be tedious.
• Nonparametric are not as efficient as Parametric test
 The signed Test for Paired Data

• Example sc 14-1. The following data show employees’ rates of defective work before
and after a change in the wage incentive plan. Compare the following two sets of
data to see whether the change lowered the defective units produced. Use the 0.10
level of significance.

Before 8 7 6 9 7 10 8 6 5 8 10 8

After 6 5 8 6 9 8 10 7 5 6 9 8
 The signed Test for Paired Data

• Example sc 14-2. After collecting data on the amount of air pollution in Los
Angeles, the Environmental Protection Agency decided to issue strict new rules to
govern the amount of hydrocarbons in the air. For the next near, it took Monthly
measurements of this pollutant and compared them to the preceding year’s
measurements for corresponding months. Based on the following data, does the
EPA have enough evidence to conclude with 95 percent confidence that the new
rules were effective in lowering the amount of hydrocarbons in the air? To justify
these laws for another year, it must conclude at α =0.10 that they are effective.
Will these laws still be in effect next year?
Month Last Year This Year
Jan 7.00 5.30
Feb 6.00 6.10
Mar 5.40 5.60
Apr 5.90 5.70
May 3.90 3.70
Jun 5.70 4.70
Jul 6.90 6.10
Aug 7.60 7.20
Sep 6.30 6.40
Oct 5.80 5.70
Nov 5.10 4.90
Dec 5.90 5.80
 The Signed Test for Paired Data

• Example 14-8. Use the sign test to see whether there is a difference between
the number of days required to collect an account receivable before and after
a new collection policy. Use the 0.05 significance level.

Before 33 36 41 32 39 47 34 29 32 34 40 42 33 36 29
After 35 29 38 34 37 47 36 32 30 34 41 38 37 35 28
The Signed Test for Paired Data

14.12 The following are the responses of mother daughter pairs for ideal
family size

Sample pair
A B C D E F G H I J K L M

Daughter 3 4 2 1 5 4 2 2 3 3 1 4 2
Mother 4 4 4 3 5 3 3 5 3 2 2 3 1
 The Signed Test for Paired Data

• Example 14-13. A nationwide used-car company has developed a new instructional video
to educate salespeople. Twenty employees’ average monthly car sales are presented below for
time periods both before and after the video’s creation. Does the company have enough
evidence to conclude with 95 percent confidence that the video was effective in increasing
the average number of cars sold? If we just consider the employees with low sales (less than
an average of 12 cars per month before the video), did the video increase their selling
performance?
Before 18.4 16.9 17.4 11.6 10.5 12.7 22.3 18.5 17.5 16.4

After 18.6 16.8 17.3 15.6 19.5 12.6 22.3 16.5 18.0 16.4

Before 15.9 18.6 23.5 18.7 9.4 16.3 18.5 17.4 11.3 8.4

After 17.4 18.6 23.5 18.9 15.6 15.4 17.6 17.4 16.5 13.4
SC 14-3. Melisa’s Boutque has three mall locations. Melisa Keeps a
daily record for each location of the number of customers who actually
make a purchase. A sample of those data follows. Using the Kruskal-
Wallis test, can you say at the 0.05 level of significance that her stores
have the same number of customers who buy?

Eastowne Mall 99 64 101 85 79 88 97 95 90 100

Craborchard Mall 83 102 125 61 91 96 94 89 93 75

Fairforest Mall 89 98 56 105 87 90 87 101 76 89

 SC14-4. A large hospital hires most of its nurses from the two major universities in
the area. Over the last year, they have been giving a test to the newly graduated nurses
entering the hospital to determine which school, if either, seems to educate its nurses
better. Based on the following scores (out of 100 possible points), help the personnel
office of the hospital determine whether the schools differ in quality. Use the Mann-
Whitney test at 10 percent level of significance.
Test Scores

School A 97 96 73 84 76 92 90 88 84 87 93
School B 88 99 65 69 97 84 85 89 91 90 87 91 72
14-14. Test the hypothesis of no difference between the ages of male
and female employees of a certain company using the Mann-Whitney U
test for the sample data. Use the 0.10 level of significance.

Males 31 25 38 33 42 40 44 26 43 35

Females 44 30 34 47 35 32 35 47 48 34
14-18. Monthly outputs in old machines and new machines

Old machines 992 945 938 1027 892 983 1014

1258 966 889 972 940 873 1016 897

New machines 965 1054 912 850 796 911 877

902 956 900 938

Can the company conclude at significance level 0.10that the change

in machine has reduced output?
14-15. The following table shows sample retail prices for three brands of shoes.
Use the Kruskal – Wallis test to determine whether there is any difference
among the retail prices of the brands throughout the country. Use the 0.01 level
of significance.

Brand A 89 90 92 81 76 88 85 95 97 86 100

Brand B 78 93 81 87 89 71 90 86 82 85

Brand C 80 88 86 85 79 80 84 85 90 92
 Runs Test
• Test for randomness - is the order or sequence of observations in a
sample random or not
• Each sample item possesses one of two possible characteristics
• Run - a succession of observations which possess the same characteristic
• Example with two runs: F, F, F, F, F, F, F, F, M, M, M, M, M, M, M
• Example with fifteen runs: F, M, F, M, F, M, F, M, F, M, F, M, F, M, F
 The One-Sample Runs Test

• Sample size: n
• Number of sample member possessing the first characteristic: n1
• Number of sample members possessing the second characteristic: n2
• n = n1 + n2
• r = Number of runs
 Run Test for Randomness
• Test for the randomness of the following sample using 0.05 significance
level:
• D A A A D D D D D A A D D A A A A D A A
D D D D D
W-O Example: A manufacturer of breakfast cereal uses a machine to insert a
randomly one of two types of toys in each box. The company wants randomness so
that every child in the neighborhood does not get the same toy. In a sample of 60
successive boxes, found the following set of toys. The symbol A and B represent the
two types of toys. Management is interested in testing at 0.20 level the hypothesis that
the toys are randomly mixed.

B A B B B A A A B B A B B B B A A A A B
A B A A B B B A A B A A A A B B A B B A
A A A B B A B B B B A A B B A B A A B B
 SC 15.5
a). A professor award grades G to all students who secures 90 or above. At 5 % level
of significance, can he conclude the brightest (G) students turned their test randomly

b) If 60 and above is passing criteria, did the students passing versus those not passing
turn their test in randomly. (use 5% significance level

Order
1-10 94 70 85 89 92 98 63 88 74 85
11-20 69 90 57 86 79 72 80 93 66 74
21-30 50 55 47 59 68 63 89 51 90 88
 One Sample Run Test

• 14-27: A social service agency kept this record of the daily number of
applicants for family dispute in the order in which they appeared at the
agency office in 30 working days.
• 3 4 6 8 4 6 7 2 5 7 4 8 4 7 9 5 9 10 5 7
4 9 8 9 11 6 7 5 9 12
• Test the randomness at 0.05 level of significance.