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alternative nonparametric test




1. What is the probability that a randomly selected observation exceeds the

a. Mean of a normal distribution?

b. Median of a normal distribution?

c. Mean of a non-normal distribution?

d. Median of a non-normal distribution?


2. Data for the average cost of a major remodeling job nearly 20 years ago in 11 selected US cities were captured and are shown below:

City Average Cost
Atlanta, GA $20,427
Boston, MA 27,255
Des Moines, IA 22,115
Kansas City, MO 23,256
Louisville, KY 21,887
Portland, OR 24,255
Raleigh-Durham, NC 19,852
Reno, NV 23,624
Ridgewood, NJ 25,885
San Francisco, CA 28,999
Tulsa, OK 20,836


a. Under what circumstances could a t-test be used to determine whether the mean cost of remodeling a kitchen in the United States was greater than $25,000?

b. What is the name of an alternative nonparametric test? Specify the null and alternative hypotheses of the test.

c. Conduct the test in part b using α = .05. Interpret your results in the context of the problem.




3. A couple of decades ago, two researchers sampled private sector and public sector organizations in Australia to study the planning undertaken in their information systems departments. The researchers asked each sample organization how much it had spent on information systems and technology in the previous fiscal year as a percentage of the organization’s total revenues. The results are reported in the table below.