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Advantages:
1. Most nonparametric tests involve easy computation, fewer mathematical details, and easier to
understand and to apply;
2. they may be used to test data that are measured on a nominal or ordinal data;
3. many nonparametric test s make it possible to work with small sample size, and very helpful to
the experimenter involved in a pilot studies or dealing with rare types of characteristics;
4. In multi-sample cases, there are available nonparametric tests for testing hypothesis
concerning observations drawn from several different populations without checking the
assumptions about the population;
5. Probability statements associated with most nonparametric are exact probabilities, which are
independent of the shape of the population
Disadvantages:
The major disadvantage of nonparametric tests is that if in fact all parametric assumptions
were satisfied in the data the values were of the required level of measurement, nonparametric
tests would disregard much of the information contained in the data. It is also though the
information conveyed by the figures used in the parametric test were ignored by its nonparametric
counterpart. In general, nonparametric tests when applied to data which are nearly normal or
nearly normal are not so powerful as the equivalent parametric method.
IQ
High
Medium
Low
Total
Classical
40
26
17
83
Pop
47
59
25
131
Rock
83
104
79
266
Total
170
189
121
480
contingency table containing r rows and c columns is referred to as an rxc table. The row and
column totals are called marginal frequencies. Note that in a test for independence, these marginal
frequencies are not fixed in advance but depend instead on the way the sample distributed itself
across the various cells in the table.
Procedure:
1 State the null hypothesis.
Ho: The two variables are independent or Ho: There is no significant relationship between
music preference and IQ.
2 State the alternative hypothesis
Ha: The two variables are not independent or Ha: There is a sig. relationship between music
preference and IQ.
3 Choose the level of significance.
4 Test Statistic: Chi-Square Test of Independence
5 Decision Rule: Rejected Ho if x2 > x2 ,(r-1)(c-1)
x 2
(Oij Eij ) 2
Eij
i 1 j 1
where Oij= observed number of cases in the i th row of the jth column
Eij= expected number of cases under Ho
Decision
8. Conclusion
Remarks:
1 The test is valid if at least 80% of the cell has expected frequencies of at least 5 and no cell has
an expected frequency
1.
2 If many expected frequencies are very small, researchers commonly combine categories of
variables to obtain a table having larger cell frequencies. Generally, one should not pool
categories unless there is a natural way to combine them.
3 For a 2x2 contingency table, a correction called Yates` correction for continuity is applied. The
formula then becomes
r
x
2
i 1 j 1
Example:
Using the table above:
1 Ho: Music preference and intelligence are independent
2 Ha: Music preference and intelligence are not independent
3
4
= 0.05
Test Statistic: Chi-Square Test for Independence
Computation:
Music
Preference
x 2c >9 . 488
IQ
High
Medium
Low
Total
Classical
40 (29.4)
26 (32.7)
17 (20.9)
83
Pop
47 (46.4)
59 (51.6)
25 (33.0)
131
Rock
83 (94.2)
104 (104.7
79 (67.1)
266
Total
170
189
121
480
x
2
(Oij Eij ) 2
i 1 j 1
= 12.38
Eij
7
8
Decision:
Since 12.38 > 9.488, rejected Ho.
There is sufficient evidence at 0.05 level of significance that music preference and
intelligence are not independent.
and
= expected
If the computed
is small, it indicates a good fit, leading to the acceptance of
H o.
Degrees of Freedom. The number of degrees of freedom in a chi-square goodnessof-fit test is equal to the number of cells minus the number of quantities obtained
from the observed data, which are used in the calculations of the expected
frequencies.
1 Sample Problem
Test the null hypothesis that observed sales do not differ significantly with
expected sales at 0.05 level of significance.
Table 1
Expected and Observed Sales in IBG Food Chain
Fried
Chicken
Expected
30
Observed
30
French Fries
Hamburger
Spaghetti
Palabok
30
30
30
30
34
28
38
20
QUIZ:
2 Test
IQ Level
Secondary
Tertiary
Post Graduate
Low
58
25
12
Average
46
48
26
High
62
41
32
the null
hypothesis that observed sales do not differ significantly with expected sales at
0.05 level of significance.
Expected and Observed Sales in IBG Food Chain
Fried
Chicken
French Fries
Hamburger
Spaghetti
Palabok
Expected
30
Observed
30
30
30
30
30
34
28
38
20
0.01
3 At
, use the following data to test the hypothesis that success in examination
taking is independent of fraternity membership.
Frat Member
Non-Frat Member
Pass
10
417
Fail
14
145
4 A random sample of 200 married men, all retired, were classified according to
education and number of children.
Educati
on
element
ary
seconda
ry
college
Total
Number of children
0 to
2 to
1
3
over 3
Total
14
37
32
83
19
12
45
42
17
96
17
10
59
78
39
200
5 Compute and interpret the correlation coefficient for the following grades of 6
students selected at random:
student
Math grade
(x)
Engish
Grade (y)
1
2
3
4
5
6
70
92
80
74
65
83
74
84
63
87
78
90