BUSI 1450U Study Guide - Midterm Guide: Multivariate Normal Distribution, Type I And Type Ii Errors, Central Limit Theorem

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26 Apr 2013
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Based on the central limit theorem, that assumption is less important for large samples, but if the distribution is very non-normal even a large sample of n=30 may not be large enough to compensate. Nonparametric hypothesis tests do not require such preconceptions about the distribution of a population variable: also called distribution-free tests. Some of the methods in this chapter rely on the concept of ranks, or rank-ordering of data. The differences between the assigned numbers (or ranks) can vary among the people who fill in the survey, or even for the same person. First sort your raw data into ascending or descending order. A hypothesis about the median: the sign test. Used to compare the medians of two independent samples to test for their equality. Equivalent to another test called the mann-whitney u test in the sense that, given the same data, it would give the same test result.