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Sign Test

The sign test is used to test hypotheses about the median of a population. It involves converting data to signs (+, -, 0) based on whether values are above, below, or equal to the hypothesized median. For small samples (n ≤ 25), the test statistic is the number of + signs and critical values are from tables. For large samples (n > 25), the test statistic is a calculated z-score compared to normal critical values. Examples demonstrate applying the sign test to test claims about median credit card debt and median NFL lineman weight.

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130 views

Sign Test

The sign test is used to test hypotheses about the median of a population. It involves converting data to signs (+, -, 0) based on whether values are above, below, or equal to the hypothesized median. For small samples (n ≤ 25), the test statistic is the number of + signs and critical values are from tables. For large samples (n > 25), the test statistic is a calculated z-score compared to normal critical values. Examples demonstrate applying the sign test to test claims about median credit card debt and median NFL lineman weight.

Uploaded by

Rams Kb
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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SIGN TEST

Vocabulary
One-sample sign test -- requires data converted to plus and minus signs to test a claim regarding the median
Change all data to + (above H0 value) or (below H0 value) Any values = to H0 value change to 0

In statistics and probability theory, the median is the numerical value separating the higher half of a data sample, a population, or a probability distribution, from the lower half.

Sign Test
Used to test the hypothesis that there is no difference in medians b/w the continuous distributions of two random variables. The test statistic used depends on the sample size In the small sample case, where the number of observations n is 25 or less, we use the number of +s and the number of s directly In the large sample case, where the number of observations n is more than 25, we use a normal approximation

Signs Test for Central Tendencies


Test Statistic
Small-Sample Case: If n 25, the test statistic in the signs test is k, defined as below. Left-Tailed Two-Tailed Right-Tailed H0: M = M0 H1: M < M0 k = # of + signs H0: M = M0 H1: M M0 k = smaller # of + or - signs H0: M = M0 H1: M > M0 k = # of - signs

Large-Sample Case: If n > 25 the test statistic is (k + ) n z0 = -------------------- n where k = is defined from above and n = number of + and signs (zeros excluded) Critical Values for a Sign Test for Randomness Small-Sample Case: Use Table VII to find critical value for a one-sample sign test Large-Sample Case: Use Table IV, standard normal table (one-tailed -z; twotailed -z/2).

Hypothesis Tests for Central Tendency Using Signs Test


Step 0: Convert all data to +, - or 0 (based on H0) Step 1 Hypotheses: Left-tailed H0: Median = M0 H1: Median < M0 Two-Tailed H0: Median = M0 H1: Median M0 Right-Tailed H0: Median = M0 H1: Median > M0

Step 2 Level of Significance: (level of significance determines critical value) Determine a level of significance, based on the seriousness of making a Type I error Small-sample case: Use Table X. Large-sample case: Use Table IV, standard normal (one-tailed -z; two(k + ) n tailed -z/2). Small-Sample: k Large-Sample: z0 = -------------------- n Step 3 Compute Test Statistic:
Step 4 Critical Value Comparison: Reject H0 if Small-Sample Case: k critical value Large-Sample Case: z0 < -z/2 (two tailed) or z0 < -z (one-tailed) Step 5 Conclusion: Reject or Fail to Reject

Small Number Example


A recent article in the school newspaper reported that the typical credit-card debt of a student is $500. Professor McCraith claims that the median credit-card debt of students at Joliet Junior College is different from $500. To test this claim, he obtains a random sample of 20 students enrolled at the college and asks them to disclose their credit-card debt. $6000 $0 $200 $0 $400 $1060 $0 $1200 $200 $250 $250 $580 $1000 $0 $0 $200 $400 $800 $700 $1000 +=8 - = 12 k= 8 n = 20 Two-Tailed Test: (Med 500) so k = number of smaller of the signs

CV = 5 (from table X)

We reject H0 if k critical value (out in the tail). Since 8 > 5, we do not reject H0.

Large Number Example


A sports reporter claims that the median weight of offensive linemen in the NFL is greater than 300 pounds. He obtains a random sample of 30 offensive linemen and obtains the data shown in Table. Test the reporters claim at the = 0.1 level of significance. 285 310 300 300 320 308 310 293 329 293 326 310 297 301 315 332 305 340 242 310 312 329 320 300 311 286 309 292 287 305 Right-Tailed Test: (Med > 300) so k = number of - signs

+ = 19 - =8 0=3 n = 30-3 = 27 k= 8
z0 = -13/30 = -1.92

(k + ) n z0 = -------------------- n

Since z0 < z (-1.28), we would reject the H0 (median = 300) in favor of the alternative, median > 300

Summary and Homework


Summary
The sign test is a nonparametric test for the median, a measure of central tendency This test counts the number of observations higher and lower than the assumed value of the median The critical values for small samples are given in tables The critical values for large samples can be approximated by a calculation with the normal distribution

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