NON PARAMETRIC TEST

GROUP MEMBERS
ABDUL SAMI
FAIZAN MASOOD
HIRA NAZ
 DEFINITION
 Non parametric test used to analyze the data
when it is not normal, and the sample size is
small that is n <30
 Nonparametric, or distribution free tests are so-
called because the assumptions underlying
their use are “fewer and weaker than those
associated with parametric tests”

 RUN TEST
 The Runs Test procedure tests whether the
order of occurrence of two values of a
variable is random. A run is a sequence of
like observations. A sample with too many
or too few runs suggests that the sample is
not random.
 Examples. Suppose that 20 people are
polled to find out if they would purchase a
product. The assumed randomness of the
sample would be seriously questioned if all
20 people were of the same gender. The
runs test can be used to determine if the
sample was drawn at random.
 Runs Test Cut Point

 Cut Point. Specifies a cut point to dichotomize the

variables that you have chosen. You can use
either the observed mean, median, or mode, or
a specified value as a cut point. Cases with
values less than the cut point are assigned to
one group, and cases with values greater than
or equal to the cut point are assigned to
another group.
  OBJECTIVE
 To test the randomness of the literacy rate in
world 95


 Ho = data is random
 H1 = data is not random
 Requirement: This test is applied on the scale
variable, but some time we can apply it on the
ordinal and nominal variable also.

 PROCEDURE
 Analyze


 Nonparametric


 Runs


 Cut point (median for scale data

 mode for
ordinal data
 mean for
nominal data)
 OK
 OUTPUT
People who read (%)
Test Valuea 88
Cases < Test Value 53
Cases >= Test Value 54
Total Cases 107
Number of Runs 53
Z -.291
Asymp. Sig. (2-tailed) .771

a. Median

INTERPRETATION
Sig value 0.771 which is >0.05 means accept null hypothesis and data of literacy in
world 95 is random
 GOODNESS OF FIT TEST
 The One-Sample Kolmogorov-Smirnov Test procedure
compares the observed cumulative distribution
function for a variable with a specified theoretical
distribution, which may be normal, uniform,
Poisson, or exponential. The Kolmogorov-Smirnov
Z is computed from the largest difference (in
absolute value) between the observed and
theoretical cumulative distribution functions. This
goodness-of-fit test tests whether the observations
could reasonably have come from the specified
distribution.

 GOODNESS OF FIT TEST
 It is used to determine the parent distribution of the
data
 Requirement: variable should be scale. (not
necessarily follow the n greater or less than 30)
 The sample mean and sample standard deviation are
the parameters for a normal distribution,
 the sample minimum and maximum values define the
range of the uniform distribution,
 the sample mean is the parameter for the Poisson
distribution, and
 the sample mean is the parameter for the exponential
distribution.

  OBJECTIVE
 To test the fitness of distribution of
preference in carpet.


 Ho = data follow the fitted (normal, poisson, any

other type of distribution in general)
 H1 = data does not follows the fitted distribution
 PROCEDURE
 Analyze


 Nonparametric

 One sample KS test

 Select variable

 Select distribution

 OK

 OUTPUT
DISTRIBUTION SIG VALUE
Normal 0.999
Uniform 1.000
Poisson 0.281
Exponential 0.442

INTERPRETATION
The distribution of the preference
in Carpet is best fitted in uniform
distribution
 A Non-Parametric Analysis of Productivity: The Case of
U.S. and Japanese Manufacturing
By JEAN-PAUL CHAVAS AND THOMAS L. Cox*

 The objective of this paper is to present a analysis of

technology, technical change and productivity in
the context of cost minimizing behavior. This
analysis provides useful insights on the nature of
technology and technical change. First, it allows
an empirical investigation of various
separabilityhypotheses concerning the production
function. Second, non-parametric tests of neutral
technical change are presented. Third, non-
parametric measures of productivity changes based
on the augmentation hypothesis.

I f the stated inequalities are satisfied for a given
set of data, then the corresponding null
hypothesis would be accepted.
 However, if there is evidence against the null
hypothesis, that is, if the stated inequalities
cannot be satisfied, then it would be useful to
have some measure on the strength of the
evidence against the null hypothesis. Here, we
propose to rely on a goodness-of-fit measure

 CONCLUSION

 This paper presents a non-parametric analysis of

technology and technical change the context of
cost minimizing behavior. The non-parametric
results are extended to incorporate output
augmenting and input augmenting(biased)
technical change. In addition, goodness-of-fit
measures are incorporated to allow further
evaluation of the evidence against null
hypotheses in non-parametric tests
