NON-PARAMETRIC TEST - Test for Randomness
Procedure testing of hypothesis 1. Setting up of hypothesis – Null hypothesis and Alternative hypothesis. 2. Defining the level of significance (α) 3. Computation of test statistic The test statistics is a statistic based on appropriate probability distribution. It is used to test whether the null hypothesis set up should be accepted or rejected. Z – Distribution: Use z- distribution under normal curve for large sample (i.e., if the sample size n≥ 30). The Z – statistic is defined as 4. Critical region or critical value. The rejection region or critical region is the region of the standard normal curve corresponding to a predetermined level of significance (α). The value of the sample statistics defines the region of acceptance and rejection is call...
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