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Sign Test - Marketing Research

The sign test is a non-parametric statistical test that can be used as an alternative to the paired t-test when the data is not normally distributed or sample sizes are small. It tests whether the median of a distribution is equal to a specific value. The test involves counting the number of observations above and below the median (or value being tested) and using binomial distribution tables to calculate a p-value. The document provides an example of using the sign test to analyze pain relief data from two drugs and demonstrates how to perform the sign test using SPSS.

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Rajdeep Mandal
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35 views

Sign Test - Marketing Research

The sign test is a non-parametric statistical test that can be used as an alternative to the paired t-test when the data is not normally distributed or sample sizes are small. It tests whether the median of a distribution is equal to a specific value. The test involves counting the number of observations above and below the median (or value being tested) and using binomial distribution tables to calculate a p-value. The document provides an example of using the sign test to analyze pain relief data from two drugs and demonstrates how to perform the sign test using SPSS.

Uploaded by

Rajdeep Mandal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Statistics: 2.

1 The sign test


Rosie Shier. 2004.

Introduction

Many statistical tests require that your data follow a normal distribution. Sometimes
this is not the case. In some instances it is possible to transform the data to make them
follow a normal distribution; in others this is not possible or the sample size might be so
small that it is difficult to ascertain whether or not the data a normally distributed. In
such cases it is necessary to use a statistical test that does not require the data to follow
a particular distribution. Such a test is called a non-parametric or distribution free
test. The sign test is an example of one of these.
The sign test is used to test the null hypothesis that the median of a distribution is equal
to some value. It can be used a) in place of a one-sample t-test b) in place of a paired
t-test or c) for ordered categorial data where a numerical scale is inappropriate but where
it is possible to rank the observations. (Note that the Wilcoxon Signed Rank Sum Test
is also appropriate in these situations and is a more powerful test than the sign test.)

Procedure for carrying out the sign test

The observations in a sample of size n are x1 , x2 , . . . , xn (these observations could be


paired differences); the null hypothesis is that the population median is equal to some
value M. Suppose that r+ of the observations are greater than M and r are smaller than
M (in the case where the sign test is being used in place of a paired t-test, M would
be zero). Values of x which are exactly equal to M are ignored; the sum r+ + r may
therefore be less than n we will denote it by n0 .
Under the null hypothesis we would expect half the xs to be above the median and half
below. Therefore, under the null hypothesis both r+ and r follow a binomial distribution
with p = 21 and n = n0 .
The test procedure is as follows:
1. Choose r = max(r , r+ ).
2. Use tables of the binomial distribution to find the probability of observing a value of
r or higher assuming p = 12 and n = n0 . If the test is one-sided, this is your p-value.
3. If the test is a two-sided test, double the probabililty obtained in (2) to obtain the
p-value.

Example:
The table below shows the hours of relief provided by two analgesic drugs in 12 patients
suffering from arthritis. Is there any evidence that one drug provides longer relief than
the other?
Case Drug A Drug B Case Drug A Drug B
1
2.0
3.5
7
14.9
16.7
2
3.6
5.7
8
6.6
6.0
3
2.6
2.9
9
2.3
3.8
4
2.6
2.4
10
2.0
4.0
5
7.3
9.9
11
6.8
9.1
6
3.4
3.3
12
8.5
20.9
Solution:
In this case our null hypothesis is that the median difference is zero. Our actual differences (Drug B - Drug A) are:
+1.5, +2.1, +0.3, 0.2, +2.6, 0.1, +1.8, 0.6, +1.5, +2.0, +2.3, +12.4
Our actual median difference is 1.65 hours. We have r+ = 9, r = 3, n = 12, r =
max(r , r+ ) = 9. Therefore our two-sided p-value (from binomial tables) is p = 0.146.
We would conclude that there is no evidence for a difference between the two treatments.
Note that the Wilcoxon Signed Rank Sum Test would also be appropriate in this case
and is a more powerful test because it takes account of the magnitude of the differences
as well as the sign.

Carrying out the sign test in SPSS

Case 1: Paired data


Choose Analyze
Select Nonparametric Tests
Select 2 Related Samples
Specify which two variables comprise your pairs of observation by clicking on them
both then clicking on the arrow to put them under Test Pair(s) List.
Under Test Type select Sign
Click on OK
The output will look like this:
Frequencies
Drug B - Drug A

Negative Differences
Positive Differencesb
Tiesc
Total

N
3
9
0
12

a. DRUGB < DRUGA


b. DRUGB > DRUGA
c. DRUGA = DRUGB

Test Statisticsb
DRUGB - DRUGA
Exact Sig. (2-tailed) 0.146
a. Binomial distribution used.
b. Sign Test
If you were carrying out a one-sided test, you would need to divide the p-value by 2.
Case 2: Single set of observations
Note that in this case SPSS includes values that are exactly equal to the median it
takes r+ = the number of observations that are greater than M and r = the number
of observations that are less than or equal to M. Any ties should therefore be excluded
manually as follows: choose Data then Select Cases; choose If condition is satisfied
and click on If ; in the box type in your variable name then 6= M , where M is the median
value specified in your null hypothesis; click on Continue then OK and proceed as
detailed below.
Choose Analyze
Select Nonparametric Tests
Select Binomial
Choose the relevant variable as the Test Variable
Under Define Dichotomy in the lower left hand corner of the pop-up screen, choose
Cut Point and specify your null value (i.e. 0 in the case of paired data, etc.)
Click on OK
The output will look like this:
Binomial Test
Category
Drug B - Drug A

Group 1
Group 2
Total

0
>0

Observed Test Prop. Exact Sig.


Prop.
(2-tailed)
3
0.25
0.50
0.146
9
0.75
12
1

If you were carrying out a one-sided test, you would need to divide the p-value by 2.

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