Business Statistics: For Contemporary Decision Making, 8th Edition

CHAPTER 17

Nonparametric Statistic

LEARNING OBJECTIVES

This chapter presents several nonparametric statistics that can be used to analyze data, thereby enabling you to:

1. Use both the small-sample and large-sample runs tests to determine whether the order of observations in a sample is random.

2. Use both the small-sample and large-sample cases of the Mann-Whitney U test to determine if there is a difference in two independent populations.

3. Use both the small-sample and large-sample cases of the Wilcoxon matched-pairs signed rank test to compare the difference in two related samples.

4. Use the Kruskal-Wallis test to determine whether samples come from the same or different populations.

5. Use the Friedman test to determine whether different treatment levels come from the same population when a blocking variable is available.

6. Use Spearman's rank correlation to analyze the degree of association of two variables.

How Is the Doughnut Business?

By investing $5,000, William Rosenberg founded the Industrial Luncheon Services company in 1946 to deliver meals and coffee break snacks to customers in suburban Boston, Massachusetts. Building on his success in this venture, Rosenberg opened his first coffee and doughnut shop called “Open Kettle” in 1948. In 1950, Rosenberg changed the ...