CHAPTER 7

Nonparametric Statistics

Chapter Objectives

• Introduce nonparametric hypothesis tests

• Discuss similarities and differences with parametric tests

• Introduce the sign test

• Introduce the Wilcoxon tests

• Introduce the runs test for randomness

7.1   Introduction

Most of the hypothesis tests introduced in previous chapters require that the population has a certain type of distribution, such as a normal distribution. Such tests are called parametric tests. In this chapter, we introduce several tests that have no such requirement. These tests are called nonparametric or distribution-free tests.

Nonparametric tests have the advantage that no certain population distribution is needed. Thus they can be used in situations where parametric ...

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