THE SIGN TEST

1) THE TEST APPROPRIATE FOR CASES WHERE CARDINAL MEASUREMENT IS

NOT POSSIBLE;
2) ONLY RANK ORDERING IS POSSIBLE, WITH RESPECT TO EACH PAIRED
UNIT;
3) APPLICABLE FOR TWO SAMPLES IN WHICH A MEMBER OF ONE SAMPLE IS
PAIRED OR TIED WITH CORRESPONDING MEMBER OF THE OTHER SAMPLE;
4) THE OBJECTIVE IS TO SHOW THAT THE TWO TREATMENTS PROVIDED TO
MEMBERS OF THE SAME POPULATION ARE NOT THE SAME, OR THE
CONDITIONS IN TWO SAMPLES ARE DIFFERENT;
5) THE VARIABLE UNDER EXAMINIATION HAS A CONTINUOUS
DISTRIBUTION;
6) NO ASSUMPTION IS MADE ABOUT THE FORM OF THIS CONTINUOUS
DISTRIBUTED OF THE DIFFERENCES BETWEEN TWO TREATMENT6S,
SCHEMES, CONDITIONS;
7) NO ASSUMPTION IS MADE ABOUT THE SAMPLES HAVING BEEN DRAWN
FROM THE SAME OR DIFFERENT POPULATIONS. THE PAIRS MAY BE FROM
DIFFERENT POPULATIONS W.R. TO GENDER, AGE, EDUCATION, INCOME
ETC.;
8) THE MAIN ASSUMPTION IS THAT THE MATCHING HAS BEEN OBTAINED
FOR EACH PAIR SEPARTELY WITH REGARD TO THE FACET / FEATURE /
VARIABLE BEING SUTDIED. ONE METHOD FOR THIS IS TO USE EACH UNIT
AS ITS WON MEASURE OF CONTROL;
9) THE NULL HYPOTHESIS IS THAT
P (X1 > X2) = (X2 > X1) = 0.5
WHERE p DENOTES PROBABILITY, X IS THE JUDGEMENT, DECISION OR
VALUE, AND 1 AND 2 DENOTE TWO SEPARATE SETS OF CONDITIONS,
TREATMENT. THUS, X1 AND X2 ARE THE SCORES OR VALUES FOR A
MATCHED PAIR.
ALTERNATIVELY, THE NULL HYPOTHESIS MAY BE STATED AS THE
MEDIAN OF THE DIFFERENCES BEING ZERO;
10)
APPLICATION OF THE TEST FOCUSES ON THE DIRECTION (SIGN)
RATHER THAN THE MAGNITUDES OF THE OBSERVED DIFFERENCES;
11) UNDER THE NULL HYPOTHESIS, THE NUMBER OF PAIRS OF X1 > X2, AND X2
> X1 ARE EXPECTED TO BE EQUAL, THAT IS, 50 PER CENT DIFFERENCES TO
BE POSITIVE AND 50 PER CENT NEGATIVE;
12)
A DIFFERENCE OF ZERO IS DISREGARDED AND THE SAMPLE SIZE IS
REDUCED CORRESPONDINGLY;
13) NULL HYPOTHESIS IS REJECTED IF EITHER POSITIVE OR NEGATIVE
(FEWER) SIGNS SIGNIFICANTLY LOWER THAN 50 OR p < 0.05 OR p < 0.01;
14)
PROBABILITY OF THE OCCURRENCE OF POSITIVE AND NEGATIVE
SIGNS CAN BE DETERMINED ON THE ASSUMPTION THAT THE SIGNS OF THE
DIFFERENCES ARE BINOMIALLY DISTRIBUTED WITH p=Q=0.5, WHERE p IS THE
1

PROBABILITY OF POSITIVE SIGNS AND q IS THE PROBABILITY OF NEGATIVE

SIGNS AND n IS THE TOTAL NUMBER OF PAIRS IN THE SAMPLE (SMALL):
(q + p)n = qn + nc1qn-1 p = ------------- + pn

Analysis of Sample Data

In the application of these two tests 13 sheets are not used because these sheets did not provide
adequate information so we have not used their information in analyses.

Table 1.1

Productivity
0.05
1.129032258
1
0.454545455
0.111111111
1.129032258
1.129032258
0.111111111
0.111111111
0.111111111
0.111111111
0.111111111
3.333333333
15
0.111111111
0.111111111
15000

Salary (in crores)

0.07
0.03
0.069
0.625
0.05
0.03
0.025
0.043
0.05
0.045
0.05
0.065
0.018
0.01
0.084
0.045
0.015

sign
-0.02
1.1
0.93
0.43
0.061
1.27
1.105
0.068
0.061
0.066
0.061
0.046
3.32
14.99
0.027
0.066
14.98

rank
-1
12
11
10
5
14
13
9
5
7.5
5
3
15
17
2
7.5
16

Sign Test

Negatives -1
Positives 16
T= -1< 16
The table value of 1 sign of 17 observations is 0.001 which is much lower than P= 0.05.
At which the significance of difference between productivity and average salary has been tested
this falls in the region of rejection. Thus over results highlights exactly proportional to the
averageproductivity of the organisation. So organisations are in a state of disequilibrium from the
view point of providing employment at the employment level. This result also suggest that the
people who start for this organisation not only highly motivated but they also posses high level
of competence and competency and the result also support our thesis that productivity may be
taken as an indicator of both motivation and performance. This is evident from the fact that

Performance
100%, 80%, 60%, 20%
Ratio 35%, 30%, 35%
All the respondents performance lies in the range of 60% to 100%.

Personnel's career and professional objectives, which are related to organisational objectives are
more important from the view point of realisation of company's objectives and hence
performance. Therefore we have given greater weight to objectives which coinside company's
objectives. These are (d) leadership, (f) team work, (g) realisation of assigned task

Career Objectives
d
f

Ratio

35%

40%

55%

The response sheet shows the ratio of these three objectives. As most of the people assigned
these companies coinside objectives, hence, productivity is at rising level in the companies.

However sign test is appropriate for studying paired observations of ordinarily measured
attributes, besides negligence of dimensions of differences implies that the test is appropriate for
these cases where ordinal measurement also --- only interval metric measurement (C.Seigal
1973) of naturally this test is less powerful than sign ranked test. Its cover power of testing may
onetime emerged while significant test will suggest its rejections. So we have also subjected our
data to more powerful signed ranked tests.

Signed Rank Test

Negative 1
Positives 152
T= -1< 152

The table value at 0.25 prob. Level is 35 and the actual value is only 1 which again indicate
rejection of null hypothesis. Null hypothesis states that AVP and Ray package are approximately
proportional to each-other. The rejection of this hypothesis suggests the gains of the productivity
growth accrew to the organisation. It also indicate that those who are recruited by these
companies are highly educated. This line supports to our thesis that productivity furnishes and
index of performance of workers. Thus the results of both sign and signed rank test are
inconsonance (agreement) with each other.

Table 1.2

Employment

Performance

Career Objective

Signs

Ranks

A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T

9
12
15
15
9
12
12
9
15
12
15
15
9
12
15
15
12
12
15
15

12
8.5
12
12
11.5
12
8.5
8
10.5
9
10
12
15
12.5
8
12
8
10.5
9
8

-3
3.5
3
3
-2.5
0
3.5
1
4.5
3
5
3
-6
-0.5
5
3
4
1.5
6
5

-7.5
11.5
7.5
7.5
-4
0
11.5
2
14
7.5
6
1.5
18.5
1
16
7.5
13
3
18.5
16

Sign Test
6

Negative -4
Positives 15
T= -4<15
Table value for 5% for N =19 is0.010 which is less than 0.5. Hence, null hypothesis has been
rejected. Null hypothesis is that there is no relationship between accomplished tasks and career
objects. It is assumes both there are distributed randomly. It means performance directly related
with career objectives and career objectives lie behind performance as motivational force.
Signed Rank Test

Negative = 31
Positives = 143
T= -31 < 143
Table value for 5% for N=19 is

Which is greater than actual value 31. Hence, null hypothesis has been rejected. This result
support to result of sign test.

Table 1.3

Pay (PA)

Employment
in Rupees
700000
300000
4.69
4.25

6000
62
62
55000
7

500000
300000
250000
4.3
500000
600000
4.5
500000
6.5
1.8
1000000
84
4.5
1.2
1.5
2.4
3650114.95
182505.7475
296959.6226
162.7124771
1.2
1000000

45000
62
62
45000
45000
45000
45000
45000
1500
200
45000
45000
2500
200
300
425948
21297.4
22694.84898
106.5615943
62
55000

This table contains two variables; salary and employment and it shows the fact that:

Average earning is 3650114.95 which is very among employees. The range of variation

8.80,000. the degree of variation is 62.71.

Average employment is 21297.4 and the range of variation is 54938. The degree

variation is 106.56.