# Two Sample Hypothesis

Good Essays
Nonparametric Hypothesis Testing Paper
Team B
RES 342
Eric Hogan
University of Phoenix

Nonparametric Hypothesis Testing
Nonparametric testing does not depend on certain data in a particular distribution. Also, nonparametric testing applies techniques that do not assume that the basis of a model is predetermined. In a previous paper we discussed a hypothesis with single and double samples. Now we will conduct the equivalent, nonparametric test of the real estate hypothesis using another five-step process. The testing we will use in this paper will be the Wilcoxon Signed-Rank Test. The Wilcoxon Signed-Rank Test compares a single sample median with a benchmark using only ranks of data instead of the original observations. It is used to compare paired observations. An advantage of the Wilcoxon Signed-Rank Test is the freedom from the normality assumption. Other advantages are robustness to outliers and applicability to ordinal data (David P. Doane, 2007). In the Wilcoxon Signed-Rank Test the population should have a lot of similarity. The data should have some correlation like houses and price for example. Our hypothesis is as stated: If a real estate home has 3 bedrooms or more, then the price is at least 200,000 dollars or more. The possible outcomes for the tests are left-tailed, two-tailed and right-tailed. The intention of this assessment is to increase knowledge of respective research.
The Wilcoxon test is a nonparametric test that tested the difference between each set of pairs, and analyzes only the differences between the paired measurements for each subject. The whole point of using the Wilcoxon Signed-Rank test is to control the experimental variability, and therefore increase the power. Factors that don’t have control in the experiment will affect the before and after the measurements equally. Within the housing sector these days is very important that homes are competitively priced, and along with taking into consideration the

References: David P. Doane, L. E. (2007). Applied Statistics. New York, NY: McGraw-Hill Irwin. University of Phoenix. (2007). Applied Statistics in Business and Economics. Retrieved from University of Phoenix, RES342 - Research and Development website.

## You May Also Find These Documents Helpful

• Satisfactory Essays

The philosophers who most influenced the development of psychology as a science all sought to explain human cognition.…

• 297 Words
• 2 Pages
Satisfactory Essays
• Powerful Essays

MKT 317 QUANTITATIVE BUSINESS RESEARCH METHODS Fall, 2011 PROFESSOR: Dr. Page OFFICE HOURS: 2:30 – 4:30 Tuesday and Thursday, and by appointment OFFICE LOCATION: N332 North Business Complex PHONE: 432-6419 E-MAIL: tpage@msu.edu TEXT: Complete Business Statistics, Seventh Edition, Aczel & Sounderpandian COURSE WEBPAGE: https://www.msu.edu/course/msc/317/ TEACHING ASSISTANTS: See the course webpage for teaching assistant office hours and contact information READ THE SYLLABUS COMPLETELY. YOU CAN EXPECT AT LEAST ONE QUESTION ON ITS CONTENT SOMETIME DURING THE TERM. COURSE DESCRIPTION This course focuses on the application of statistical techniques to real world business problems. Topics covered include applications of difference of means tests,…

• 1999 Words
• 8 Pages
Powerful Essays
• Best Essays

As we begin the final stages of our project it is important to understand the process of applied research and how one or more variable have an impact on the dependable variable. It is important to understand why research is necessary and how we apply research to get answers to issues. The team analyzed thirty date sets to research homes with or without a pool, with or without a garage, and on the proximity of the house to the city, and how those factors affected the selling prices of homes. Furthermore, the team also analyzed more data sets to include more variables like bedrooms and bathrooms. Six bedrooms, three bath houses will sell for more than a one bedroom, one bath houses, regardless of whether it has a pool or garage. As we go forward with this assignment and analyze more data collection sets, it seems that the hypothesis that we proposed is the right one. Our hypothesis is based around the concept of human prioritization and its role in home selection. Additionally, the team researched three scholarly articles that are pertinent to our study to help us understand why the research is important and necessary.…

• 1733 Words
• 7 Pages
Best Essays
• Best Essays

The objective of this report is for the reader to gain a better understanding of how the real estate market and its processes are accomplished so that the average homeowner can achieve homeownership. Primarily the report is prepared so that the reader can also comprehend how property values are determined, and how property values impact the economy. The culmination of all research for this report will aid the reader in recognizing why real estate values have declined during the recent recession.…

• 4315 Words
• 18 Pages
Best Essays
• Satisfactory Essays

In our research we wanted to know what home buyers were looking for when purchasing a home or what were in some of the homes that were selling in the economy at today’s state. We believed that it’s important to understand and know what buyers are looking for and what’s important to them for the sake of the economy. The histogram shows the median in home buyers where the frequency is high. This means that at the frequency of 11 home buyers are willing to spend 233550 on a home, although the chart does not show the exact things home buyers are looking for when purchasing a home it’s obvious at 233550, whatever comes with a home in such areas, this is what most individuals are looking for. It can also be argued that at a lower frequency many home buyers are not willing to spend in the price ranges of 139900 and 186725 and it is safe to say that it doesn’t matter what features comes with these homes its obviously not the heightened picks for home buyers.…

• 602 Words
• 3 Pages
Satisfactory Essays
• Good Essays

Hypothesis testing begins with the assumption that randomization is used to collect quantitative data about the sample and that the distribution of this data has a normal shape.…

• 342 Words
• 2 Pages
Good Essays
• Powerful Essays

Burton, G, Carrol ,G and Wall, S. (2002). Data presentation and collection. In: Burton, G, Carrol ,G and Wall, S Quantitative Methods for Business and Economics. 2nd ed. Essex: Pearson. 1-5.…

• 2626 Words
• 11 Pages
Powerful Essays
• Powerful Essays

The purpose of this paper is to create a hypothesis based on two-sample tests. Two-sample tests compare two sample estimates with each other, whereas one-sample tests compare a sample estimate with a non-sample benchmark (Doane & Seward, 2007). The learning team has chosen to create a hypothesis testing using the wages and wage earners data set. The learning team has developed one business research question from which the team will formulate a research hypothesis. The business research question and testing simply involves creating two separate groups of the data set, and testing whether a difference in the mean of the earnings in both the older group, ages 42-64 and the younger group, ages 18-41 exists. To create a solid testing hypothesis, the team has formulated both a numerical and verbal hypothesis statement, conducted the five-step hypothesis test on the data, and presented a description of the test results by explaining how the discoveries from the hypothesis testing can be used to answer the research question.…

• 1193 Words
• 5 Pages
Powerful Essays
• Powerful Essays

Source: The Review of Economics and Statistics, Vol. 78, No. 2 (May, 1996), pp. 232-243…

• 9833 Words
• 40 Pages
Powerful Essays
• Powerful Essays

Bowerman-O¡¦Connell. (2003). Business Statistics in Practice. (3rd ed.). [University of Phoenix Custom Edition e-text]. The McGraw-Hill. Retrieved May 1, 2005, from University of Phoenix, Resource, QNT531-Advanced problems in Statistics and Research Methods Course Web site: https://mycampus.phoenix.edu/secure/resource/resource.asp…

• 3590 Words
• 15 Pages
Powerful Essays
• Good Essays

Some factors usually considered in placing values on residential properties include infrastructure facilities such as…

• 898 Words
• 3 Pages
Good Essays
• Powerful Essays

## hellow

• 11993 Words
• 89 Pages

the researcher used Wilcoxon Signed Rank Test to test for the significant of the difference…

• 11993 Words
• 89 Pages
Powerful Essays
• Satisfactory Essays

Adkins, L.C, and Hill, R.C., 2011. Using STATA for Principles of Econometrics, Fourth Edition. New York, John Wiley & Son Inc.…

• 685 Words
• 5 Pages
Satisfactory Essays
• Good Essays

The diagrams provide some information about the housing prices of 5 cities around the world from 1990 to 2000. Summarize the information by selecting and reporting the main features and make comparisons where relevant.…

• 806 Words
• 4 Pages
Good Essays
• Powerful Essays

The most important factor in determining the selling prices ofhouses is to know the features that drive the selling prices of the house. People tend to have more interest in houses with multiple bed rooms/bathrooms, fireplace, garage for multiple cars and location while choosing a house. So, a house that meets this requirement tends to be priced more and the house with these features being absent is priced low. According to the survey conducted by Marlene A. Smith & Peter G. Bryant while forming their case study titled “Housing Price” (Case #27 - Practical Data Analysis: Case Studies in Business Statistics), 10 variables were selected to find out their impact in determining the housing price. A sample of 108 houses wasselected from East Ville, Oregon along with their characteristics on 10 selected selected variables. The variable set for the study is:…

• 4242 Words
• 17 Pages
Powerful Essays