SlideShare a Scribd company logo
Section & Lesson #:
Pre-Requisite Lessons:
Complex Tools + Clear Teaching = Powerful Results
Hypothesis Testing: Central Tendency –
Non-Normal (Compare 1:1)
Six Sigma-Analyze – Lesson 21
An extension on hypothesis testing, this lesson reviews the Mann-Whitney
test as a central tendency measurement for non-normal dist.
Six Sigma-Analyze #20 – Hypothesis Testing: Central Tendency –
Non-Normal (Compare 1:Standard)
Copyright © 2011-2019 by Matthew J. Hansen. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted by any means
(electronic, mechanical, photographic, photocopying, recording or otherwise) without prior permission in writing by the author and/or publisher.
Why do we need hypothesis testing?
o Remember, our project goal is to resolve a problem by first building a transfer function.
• We don’t want to just alleviate symptoms, we want to resolve the root cause.
 Remember Hannah? We don’t want to alleviate the arthritis pain in her leg, but heal the strep throat.
• If we don’t know what the root cause is, then we need to build a transfer function.
 By building a transfer function, we can know what changes (improvements) should fix the root cause.
o Remember, the Transfer Function is defined as Y = f(X).
• This is described as “output response Y
is a function of one or more input X’s”.
• It’s part of the IPO flow model where we
described the IPO flow model as one or
more inputs feeding into a process that
transforms it to create a new output.
o How does a transfer function fit with hypothesis testing?
• Hypothesis testing tells us which X’s (inputs) are independently influencing the Y (output).
 When we reject a null hypothesis, we’re building evidence proving which X’s are “guilty” of driving the Y.
 We’ll compile all the evidence in the Improve phase of DMAIC and begin to fix those root causes.
Copyright © 2011-2019 by Matthew J. Hansen. All Rights Reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted by any means (electronic, mechanical, photographic,
photocopying, recording or otherwise) without prior permission in writing by the author and/or publisher.
Y = f(X)
Input (X) > Process > Output (Y)
Review Hypothesis Testing: 4 Step Process
o Remember, the 4 high-level steps for hypothesis testing begin/end with being practical:
o As the heart of hypothesis testing, steps 2 & 3 can be drilled to the following 6 steps:
Copyright © 2011-2019 by Matthew J. Hansen. All Rights Reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted by any means (electronic, mechanical, photographic,
photocopying, recording or otherwise) without prior permission in writing by the author and/or publisher.
3
Practical Statistical
Problem Problem
Solution Solution
 

Practical Problem
State the problem as a
practical Yes/No question.
 Statistical Problem
Convert the problem to an
analytical question identifying
the statistical tool/method.

Practical Solution
Interpret the analytical
answer in a practical way.
Statistical Solution
Interpret the results of the
hypothesis test with an
analytical answer.

1. Define the objective.
2. State the Null Hypothesis (H0) and Alternative Hypothesis (Ha).
3. Define the confidence (1-α) and power (beta or 1-β).
4. Collect the sample data.
5. Calculate the P-value.
6. Interpret the results: accept or reject the null hypothesis (H0).
Is the data type for both values discrete?
What are you measuring?
Is the data normal?
SpreadCentral Tendency
Compare 1:Standard
1 Proportion Test
Compare 1:1
2 Proportion Test
Compare 2+ Factors
Chi2 Test
Compare 1:Standard
1 Sample T Test
Compare 1:1
2 Sample T Test
or Paired T Test
Compare 2+ Factors
One-way ANOVA Test
Compare 1:Standard
1 Sample Wilcoxon
or 1 Sample Sign
Compare 1:1
Mann-Whitney Test
Compare 2+ Factors
Mood’s Median Test
or Kruskal-Wallis Test
Compare 1:Standard
1 Variance Test
Compare 1:1
2 Variance Test
Compare 2+ Factors
Test for Equal Variances
Yes No
Yes No
Proportions
Compare 1:1
Pearson Correlation
or Fitted Line Plot
Compare 2+ Factors
Multiple Regression or
General Linear Model
Is the data type for both values continuous?
Relationships
No Yes
Review Finding the Right Statistical Test
o What statistical test do I use for my hypothesis testing?
• The type of statistical test depends on the data to be tested, as described in the chart below:
Copyright © 2011-2019 by Matthew J. Hansen. All Rights Reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted by any means (electronic, mechanical, photographic,
photocopying, recording or otherwise) without prior permission in writing by the author and/or publisher.
4
Lesson
Current
Confidence Intervals (CI) Redefined
o Remember, confidence intervals (CI) are an estimated upper/lower range of the mean.
• The CI narrows when you add more samples:
• Remember, statistics are intended to help you make inferences about a population.
 A mean of 57 with a 95% confidence interval of 55 and 59 implies that although the sample mean is only
57, you can be 95% confident that the population mean will fall somewhere between 55 and 59.
• The first step in hypothesis testing is to define the objective by asking “is there a difference…”
 Statistical tests generally compare the different CIs between factors to see if a difference exists.
Copyright © 2011-2019 by Matthew J. Hansen. All Rights Reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted by any means (electronic, mechanical, photographic,
photocopying, recording or otherwise) without prior permission in writing by the author and/or publisher.
5
With fewer samples, the population
mean falls within a wide interval.
Add more samples and the population
mean falls in a more narrow interval.
With more samples, the more confident
(narrow) the mean interval becomes.
Factor A
Factor B
2.5 2.75 3.0 3.25 3.5
Large overlap indicates the population
mean may be the same for both
groups; therefore there is no difference
between them (high P-value).
N = 20
Factor A
Factor B
2.5 2.75 3.0 3.25 3.5
Small overlap indicates a smaller chance
the population mean may be the same for
both groups; therefore there is may be no
difference between them (small P-value).
N = 50
Factor A
Factor B
2.5 2.75 3.0 3.25 3.5
No overlap indicates the population
mean is different for both groups;
therefore there is a difference between
them (low or no P-value).
N = 100
Mann-Whitney Test: Introduction
o When should I use it?
• To compare median values from two random samples from two populations
having similar shape and variation.
• It’s also called the 2 Sample Rank test or 2 Sample Wilcoxon Rank Sum test.
o How do I find it in Minitab?
• Go to Stat > Nonparametrics > Mann-Whitney…
o What are the inputs for the test?
Copyright © 2011-2019 by Matthew J. Hansen. All Rights Reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted by any means (electronic, mechanical, photographic,
photocopying, recording or otherwise) without prior permission in writing by the author and/or publisher.
6
Now
The columns containing the continuous data to test.
The desired confidence interval for the median.
Defines how the test will compare the median values.
Mann-Whitney Test: MetricC Example
o Example: MetricC sample values
• Background:
 Use the arbitrary values in the “MetricC” column of the Minitab Sample Data file.
 Copy/paste the values of MetricC and split them 50/50 into two new columns.
– In this example, the first 50 were labeled “MetricC1” and the remaining 50 as “MetricC2”.
• Practical Problem:
 Is the median of MetricC1 equal to the median of MetricC2?
• Statistical Problem:
 State the null (H0) and alternative (Ha) hypotheses:
– H0: η1 = η2 and Ha: η1 ≠ η2
 Define the confidence (1-α) and power (1-β):
– For confidence, we’ll accept the default of 95% (which means α = 5%) and power of 90% (which means β = 10%).
 Type the statistical problem into Minitab:
– In Minitab, go to Stat > Nonparametrics > Mann-Whitney…
– In the “First Sample” box, select MetricC1 from the list of columns and MetricC2 as the “Second Sample”.
– Ensure the “Confidence Level” is 95.0 and alternative is “not equal”.
• Statistical Solution:
 Refer to the session window results.
– P-value is the “Test is significant at” value.
– Since P-value is > 0.05 (α), then we fail to reject H0.
• Practical Solution:
 The sample is insufficient to prove that the median
of MetricC1 is different than the median of MetricC2.
Copyright © 2011-2019 by Matthew J. Hansen. All Rights Reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted by any means (electronic, mechanical, photographic,
photocopying, recording or otherwise) without prior permission in writing by the author and/or publisher.
7
Now
Practical Application
o Refer to the critical metric (output Y) and at least 5 factors (input X’s) you identified in
a previous lesson for applying to this hypothesis testing.
• For any factor that is a continuous value, try applying the Mann-Whitney test.
 To do this, you’ll need to compare at least two different sets of that same factor (e.g., across multiple
periods of time, or by different locations, or by different groups, etc.).
 A non-parametric test like this is ideal for non-normal distributions, but you can still run it even if your
continuous value has a normal distribution.
 Other factors in your organization can be used for this exercise.
• Before running the Mann-Whitney Test, do the medians of the factors appear to be different?
• After running the Mann-Whitney Test, are the medians of the factors statistically different?
• If the answers to the above 2 questions are different, then how does that affect how you’d
typically measure and communicate that factor in the organization?
 For example, do the differences between the compared factors affect financial decisions (e.g., how people
are compensated), or process changes (e.g., how the process may be modified), or other critical actions?
 If so, then how should the results from this Mann-Whitney Test be used to influence your organization?
– Should they change how the factors are compared (e.g., across different times, locations, groups, etc.)?
– Should they change how the factor is measured?
– Should they change how they react when they compare the metric this way?
Copyright © 2011-2019 by Matthew J. Hansen. All Rights Reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted by any means (electronic, mechanical, photographic,
photocopying, recording or otherwise) without prior permission in writing by the author and/or publisher.
8

More Related Content

What's hot

Hypothesis Testing: Proportions (Compare 2+ Factors)
Hypothesis Testing: Proportions (Compare 2+ Factors)Hypothesis Testing: Proportions (Compare 2+ Factors)
Hypothesis Testing: Proportions (Compare 2+ Factors)
Matt Hansen
 
Hypothesis Testing: Central Tendency – Normal (Compare 2+ Factors)
Hypothesis Testing: Central Tendency – Normal (Compare 2+ Factors)Hypothesis Testing: Central Tendency – Normal (Compare 2+ Factors)
Hypothesis Testing: Central Tendency – Normal (Compare 2+ Factors)
Matt Hansen
 
Hypothesis Testing: Central Tendency – Non-Normal (Nonparametric Overview)
Hypothesis Testing: Central Tendency – Non-Normal (Nonparametric Overview)Hypothesis Testing: Central Tendency – Non-Normal (Nonparametric Overview)
Hypothesis Testing: Central Tendency – Non-Normal (Nonparametric Overview)
Matt Hansen
 
Hypothesis Testing: Spread (Compare 2+ Factors)
Hypothesis Testing: Spread (Compare 2+ Factors)Hypothesis Testing: Spread (Compare 2+ Factors)
Hypothesis Testing: Spread (Compare 2+ Factors)
Matt Hansen
 
Hypothesis Testing: Statistical Laws and Confidence Intervals
Hypothesis Testing: Statistical Laws and Confidence IntervalsHypothesis Testing: Statistical Laws and Confidence Intervals
Hypothesis Testing: Statistical Laws and Confidence Intervals
Matt Hansen
 
Hypothesis Testing: Finding the Right Statistical Test
Hypothesis Testing: Finding the Right Statistical TestHypothesis Testing: Finding the Right Statistical Test
Hypothesis Testing: Finding the Right Statistical Test
Matt Hansen
 
Hypothesis Testing: Central Tendency – Normal (Compare 1:Standard)
Hypothesis Testing: Central Tendency – Normal (Compare 1:Standard)Hypothesis Testing: Central Tendency – Normal (Compare 1:Standard)
Hypothesis Testing: Central Tendency – Normal (Compare 1:Standard)
Matt Hansen
 
Hypothesis Testing: Relationships (Overview)
Hypothesis Testing: Relationships (Overview)Hypothesis Testing: Relationships (Overview)
Hypothesis Testing: Relationships (Overview)
Matt Hansen
 
Hypothesis Testing: Overview
Hypothesis Testing: OverviewHypothesis Testing: Overview
Hypothesis Testing: Overview
Matt Hansen
 
Hypothesis Testing: Formal and Informal Sub-Processes
Hypothesis Testing: Formal and Informal Sub-ProcessesHypothesis Testing: Formal and Informal Sub-Processes
Hypothesis Testing: Formal and Informal Sub-Processes
Matt Hansen
 
Hypothesis Testing: Relationships (Compare 2+ Factors)
Hypothesis Testing: Relationships (Compare 2+ Factors)Hypothesis Testing: Relationships (Compare 2+ Factors)
Hypothesis Testing: Relationships (Compare 2+ Factors)
Matt Hansen
 
Descriptive Statistics
Descriptive StatisticsDescriptive Statistics
Descriptive Statistics
Matt Hansen
 
Testing for Multicollinearity
Testing for MulticollinearityTesting for Multicollinearity
Testing for Multicollinearity
Matt Hansen
 
MAT80 - White paper july 2017 - Prof. P. Irwing
MAT80 - White paper july 2017 - Prof. P. IrwingMAT80 - White paper july 2017 - Prof. P. Irwing
MAT80 - White paper july 2017 - Prof. P. Irwing
Paul Irwing
 
Dowhy: An end-to-end library for causal inference
Dowhy: An end-to-end library for causal inferenceDowhy: An end-to-end library for causal inference
Dowhy: An end-to-end library for causal inference
Amit Sharma
 
Session 9 intro_of_topics_in_hypothesis_testing
Session 9 intro_of_topics_in_hypothesis_testingSession 9 intro_of_topics_in_hypothesis_testing
Session 9 intro_of_topics_in_hypothesis_testingGlory Codilla
 
Basic Statistical Concepts & Decision-Making
Basic Statistical Concepts & Decision-MakingBasic Statistical Concepts & Decision-Making
Basic Statistical Concepts & Decision-MakingPenn State University
 
8. testing of hypothesis for variable & attribute data
8. testing of hypothesis for variable & attribute  data8. testing of hypothesis for variable & attribute  data
8. testing of hypothesis for variable & attribute data
Hakeem-Ur- Rehman
 
Causal Inference in Data Science and Machine Learning
Causal Inference in Data Science and Machine LearningCausal Inference in Data Science and Machine Learning
Causal Inference in Data Science and Machine Learning
Bill Liu
 
Lecture 7
Lecture 7Lecture 7
Lecture 7butest
 

What's hot (20)

Hypothesis Testing: Proportions (Compare 2+ Factors)
Hypothesis Testing: Proportions (Compare 2+ Factors)Hypothesis Testing: Proportions (Compare 2+ Factors)
Hypothesis Testing: Proportions (Compare 2+ Factors)
 
Hypothesis Testing: Central Tendency – Normal (Compare 2+ Factors)
Hypothesis Testing: Central Tendency – Normal (Compare 2+ Factors)Hypothesis Testing: Central Tendency – Normal (Compare 2+ Factors)
Hypothesis Testing: Central Tendency – Normal (Compare 2+ Factors)
 
Hypothesis Testing: Central Tendency – Non-Normal (Nonparametric Overview)
Hypothesis Testing: Central Tendency – Non-Normal (Nonparametric Overview)Hypothesis Testing: Central Tendency – Non-Normal (Nonparametric Overview)
Hypothesis Testing: Central Tendency – Non-Normal (Nonparametric Overview)
 
Hypothesis Testing: Spread (Compare 2+ Factors)
Hypothesis Testing: Spread (Compare 2+ Factors)Hypothesis Testing: Spread (Compare 2+ Factors)
Hypothesis Testing: Spread (Compare 2+ Factors)
 
Hypothesis Testing: Statistical Laws and Confidence Intervals
Hypothesis Testing: Statistical Laws and Confidence IntervalsHypothesis Testing: Statistical Laws and Confidence Intervals
Hypothesis Testing: Statistical Laws and Confidence Intervals
 
Hypothesis Testing: Finding the Right Statistical Test
Hypothesis Testing: Finding the Right Statistical TestHypothesis Testing: Finding the Right Statistical Test
Hypothesis Testing: Finding the Right Statistical Test
 
Hypothesis Testing: Central Tendency – Normal (Compare 1:Standard)
Hypothesis Testing: Central Tendency – Normal (Compare 1:Standard)Hypothesis Testing: Central Tendency – Normal (Compare 1:Standard)
Hypothesis Testing: Central Tendency – Normal (Compare 1:Standard)
 
Hypothesis Testing: Relationships (Overview)
Hypothesis Testing: Relationships (Overview)Hypothesis Testing: Relationships (Overview)
Hypothesis Testing: Relationships (Overview)
 
Hypothesis Testing: Overview
Hypothesis Testing: OverviewHypothesis Testing: Overview
Hypothesis Testing: Overview
 
Hypothesis Testing: Formal and Informal Sub-Processes
Hypothesis Testing: Formal and Informal Sub-ProcessesHypothesis Testing: Formal and Informal Sub-Processes
Hypothesis Testing: Formal and Informal Sub-Processes
 
Hypothesis Testing: Relationships (Compare 2+ Factors)
Hypothesis Testing: Relationships (Compare 2+ Factors)Hypothesis Testing: Relationships (Compare 2+ Factors)
Hypothesis Testing: Relationships (Compare 2+ Factors)
 
Descriptive Statistics
Descriptive StatisticsDescriptive Statistics
Descriptive Statistics
 
Testing for Multicollinearity
Testing for MulticollinearityTesting for Multicollinearity
Testing for Multicollinearity
 
MAT80 - White paper july 2017 - Prof. P. Irwing
MAT80 - White paper july 2017 - Prof. P. IrwingMAT80 - White paper july 2017 - Prof. P. Irwing
MAT80 - White paper july 2017 - Prof. P. Irwing
 
Dowhy: An end-to-end library for causal inference
Dowhy: An end-to-end library for causal inferenceDowhy: An end-to-end library for causal inference
Dowhy: An end-to-end library for causal inference
 
Session 9 intro_of_topics_in_hypothesis_testing
Session 9 intro_of_topics_in_hypothesis_testingSession 9 intro_of_topics_in_hypothesis_testing
Session 9 intro_of_topics_in_hypothesis_testing
 
Basic Statistical Concepts & Decision-Making
Basic Statistical Concepts & Decision-MakingBasic Statistical Concepts & Decision-Making
Basic Statistical Concepts & Decision-Making
 
8. testing of hypothesis for variable & attribute data
8. testing of hypothesis for variable & attribute  data8. testing of hypothesis for variable & attribute  data
8. testing of hypothesis for variable & attribute data
 
Causal Inference in Data Science and Machine Learning
Causal Inference in Data Science and Machine LearningCausal Inference in Data Science and Machine Learning
Causal Inference in Data Science and Machine Learning
 
Lecture 7
Lecture 7Lecture 7
Lecture 7
 

Similar to Hypothesis Testing: Central Tendency – Non-Normal (Compare 1:1)

Assignment 2 Tests of SignificanceThroughout this assignment yo.docx
Assignment 2 Tests of SignificanceThroughout this assignment yo.docxAssignment 2 Tests of SignificanceThroughout this assignment yo.docx
Assignment 2 Tests of SignificanceThroughout this assignment yo.docx
rock73
 
What So Funny About Proportion Testv3
What So Funny About Proportion Testv3What So Funny About Proportion Testv3
What So Funny About Proportion Testv3
ChrisConnors
 
Compiling Analysis Results
Compiling Analysis ResultsCompiling Analysis Results
Compiling Analysis Results
Matt Hansen
 
2016 Symposium Poster - statistics - Final
2016 Symposium Poster - statistics - Final2016 Symposium Poster - statistics - Final
2016 Symposium Poster - statistics - FinalBrian Lin
 
Spss session 1 and 2
Spss session 1 and 2Spss session 1 and 2
Spss session 1 and 2
Judianto Nugroho
 
Hypothesis Testing Definitions A statistical hypothesi.docx
Hypothesis Testing  Definitions A statistical hypothesi.docxHypothesis Testing  Definitions A statistical hypothesi.docx
Hypothesis Testing Definitions A statistical hypothesi.docx
wilcockiris
 
Quantitative_analysis.ppt
Quantitative_analysis.pptQuantitative_analysis.ppt
Quantitative_analysis.ppt
mousaderhem1
 
Download the presentation
Download the presentationDownload the presentation
Download the presentationbutest
 
CORE: May the “Power” (Statistical) - Be with You!
CORE: May the “Power” (Statistical) - Be with You!CORE: May the “Power” (Statistical) - Be with You!
CORE: May the “Power” (Statistical) - Be with You!
Trident University
 
A05 Continuous One Variable Stat Tests
A05 Continuous One Variable Stat TestsA05 Continuous One Variable Stat Tests
A05 Continuous One Variable Stat TestsLeanleaders.org
 
A05 Continuous One Variable Stat Tests
A05 Continuous One Variable Stat TestsA05 Continuous One Variable Stat Tests
A05 Continuous One Variable Stat TestsLeanleaders.org
 
Distributions: Non-Normal with Matt Hansen at StatStuff
Distributions: Non-Normal with Matt Hansen at StatStuffDistributions: Non-Normal with Matt Hansen at StatStuff
Distributions: Non-Normal with Matt Hansen at StatStuff
Matt Hansen
 
Chap010.ppt
Chap010.pptChap010.ppt
Chap010.ppt
ManoloTaquire
 
Statistics pres 3.31.2014
Statistics pres 3.31.2014Statistics pres 3.31.2014
Statistics pres 3.31.2014tjcarter
 
Identify Root Causes – C&E Matrix
Identify Root Causes – C&E MatrixIdentify Root Causes – C&E Matrix
Identify Root Causes – C&E Matrix
Matt Hansen
 
Spss & minitab
Spss & minitabSpss & minitab
Spss & minitab
asifusman1998
 
Statistical-Tests-and-Hypothesis-Testing.pptx
Statistical-Tests-and-Hypothesis-Testing.pptxStatistical-Tests-and-Hypothesis-Testing.pptx
Statistical-Tests-and-Hypothesis-Testing.pptx
CHRISTINE MAY CERDA
 

Similar to Hypothesis Testing: Central Tendency – Non-Normal (Compare 1:1) (18)

Assignment 2 Tests of SignificanceThroughout this assignment yo.docx
Assignment 2 Tests of SignificanceThroughout this assignment yo.docxAssignment 2 Tests of SignificanceThroughout this assignment yo.docx
Assignment 2 Tests of SignificanceThroughout this assignment yo.docx
 
What So Funny About Proportion Testv3
What So Funny About Proportion Testv3What So Funny About Proportion Testv3
What So Funny About Proportion Testv3
 
Compiling Analysis Results
Compiling Analysis ResultsCompiling Analysis Results
Compiling Analysis Results
 
2016 Symposium Poster - statistics - Final
2016 Symposium Poster - statistics - Final2016 Symposium Poster - statistics - Final
2016 Symposium Poster - statistics - Final
 
T test
T test T test
T test
 
Spss session 1 and 2
Spss session 1 and 2Spss session 1 and 2
Spss session 1 and 2
 
Hypothesis Testing Definitions A statistical hypothesi.docx
Hypothesis Testing  Definitions A statistical hypothesi.docxHypothesis Testing  Definitions A statistical hypothesi.docx
Hypothesis Testing Definitions A statistical hypothesi.docx
 
Quantitative_analysis.ppt
Quantitative_analysis.pptQuantitative_analysis.ppt
Quantitative_analysis.ppt
 
Download the presentation
Download the presentationDownload the presentation
Download the presentation
 
CORE: May the “Power” (Statistical) - Be with You!
CORE: May the “Power” (Statistical) - Be with You!CORE: May the “Power” (Statistical) - Be with You!
CORE: May the “Power” (Statistical) - Be with You!
 
A05 Continuous One Variable Stat Tests
A05 Continuous One Variable Stat TestsA05 Continuous One Variable Stat Tests
A05 Continuous One Variable Stat Tests
 
A05 Continuous One Variable Stat Tests
A05 Continuous One Variable Stat TestsA05 Continuous One Variable Stat Tests
A05 Continuous One Variable Stat Tests
 
Distributions: Non-Normal with Matt Hansen at StatStuff
Distributions: Non-Normal with Matt Hansen at StatStuffDistributions: Non-Normal with Matt Hansen at StatStuff
Distributions: Non-Normal with Matt Hansen at StatStuff
 
Chap010.ppt
Chap010.pptChap010.ppt
Chap010.ppt
 
Statistics pres 3.31.2014
Statistics pres 3.31.2014Statistics pres 3.31.2014
Statistics pres 3.31.2014
 
Identify Root Causes – C&E Matrix
Identify Root Causes – C&E MatrixIdentify Root Causes – C&E Matrix
Identify Root Causes – C&E Matrix
 
Spss & minitab
Spss & minitabSpss & minitab
Spss & minitab
 
Statistical-Tests-and-Hypothesis-Testing.pptx
Statistical-Tests-and-Hypothesis-Testing.pptxStatistical-Tests-and-Hypothesis-Testing.pptx
Statistical-Tests-and-Hypothesis-Testing.pptx
 

More from Matt Hansen

Getting Feedback with a Plus/Delta Tool
Getting Feedback with a Plus/Delta ToolGetting Feedback with a Plus/Delta Tool
Getting Feedback with a Plus/Delta Tool
Matt Hansen
 
Closing a Project
Closing a ProjectClosing a Project
Closing a Project
Matt Hansen
 
Documenting a New Process with SOPs
Documenting a New Process with SOPsDocumenting a New Process with SOPs
Documenting a New Process with SOPs
Matt Hansen
 
Building a Control Plan
Building a Control PlanBuilding a Control Plan
Building a Control Plan
Matt Hansen
 
Control Charts: Recalculating Control Limits
Control Charts: Recalculating Control LimitsControl Charts: Recalculating Control Limits
Control Charts: Recalculating Control Limits
Matt Hansen
 
Control Charts: U Chart
Control Charts: U ChartControl Charts: U Chart
Control Charts: U Chart
Matt Hansen
 
Control Charts: P Chart
Control Charts: P ChartControl Charts: P Chart
Control Charts: P Chart
Matt Hansen
 
Control Charts: Xbar-S Chart
Control Charts: Xbar-S ChartControl Charts: Xbar-S Chart
Control Charts: Xbar-S Chart
Matt Hansen
 
Control Charts: I-MR Chart
Control Charts: I-MR ChartControl Charts: I-MR Chart
Control Charts: I-MR Chart
Matt Hansen
 
Control Charts: Finding the Right Control Chart
Control Charts: Finding the Right Control ChartControl Charts: Finding the Right Control Chart
Control Charts: Finding the Right Control Chart
Matt Hansen
 
Building a Scorecard
Building a ScorecardBuilding a Scorecard
Building a Scorecard
Matt Hansen
 
Control Phase Roadmap (Level 3)
Control Phase Roadmap (Level 3)Control Phase Roadmap (Level 3)
Control Phase Roadmap (Level 3)
Matt Hansen
 
Piloting Solutions: Build the Pilot Plan
Piloting Solutions: Build the Pilot PlanPiloting Solutions: Build the Pilot Plan
Piloting Solutions: Build the Pilot Plan
Matt Hansen
 
Piloting Solutions: The Process
Piloting Solutions: The ProcessPiloting Solutions: The Process
Piloting Solutions: The Process
Matt Hansen
 
Risk Assessment with a FMEA Tool
Risk Assessment with a FMEA ToolRisk Assessment with a FMEA Tool
Risk Assessment with a FMEA Tool
Matt Hansen
 
Prioritize Solutions with an Impact Matrix
Prioritize Solutions with an Impact MatrixPrioritize Solutions with an Impact Matrix
Prioritize Solutions with an Impact Matrix
Matt Hansen
 
Brainstorm Solutions with an Affinity Diagram
Brainstorm Solutions with an Affinity DiagramBrainstorm Solutions with an Affinity Diagram
Brainstorm Solutions with an Affinity Diagram
Matt Hansen
 
Brainstorm & Prioritize Solutions with a Workout
Brainstorm & Prioritize Solutions with a WorkoutBrainstorm & Prioritize Solutions with a Workout
Brainstorm & Prioritize Solutions with a Workout
Matt Hansen
 
Improve Phase Roadmap (Level 3)
Improve Phase Roadmap (Level 3)Improve Phase Roadmap (Level 3)
Improve Phase Roadmap (Level 3)
Matt Hansen
 

More from Matt Hansen (19)

Getting Feedback with a Plus/Delta Tool
Getting Feedback with a Plus/Delta ToolGetting Feedback with a Plus/Delta Tool
Getting Feedback with a Plus/Delta Tool
 
Closing a Project
Closing a ProjectClosing a Project
Closing a Project
 
Documenting a New Process with SOPs
Documenting a New Process with SOPsDocumenting a New Process with SOPs
Documenting a New Process with SOPs
 
Building a Control Plan
Building a Control PlanBuilding a Control Plan
Building a Control Plan
 
Control Charts: Recalculating Control Limits
Control Charts: Recalculating Control LimitsControl Charts: Recalculating Control Limits
Control Charts: Recalculating Control Limits
 
Control Charts: U Chart
Control Charts: U ChartControl Charts: U Chart
Control Charts: U Chart
 
Control Charts: P Chart
Control Charts: P ChartControl Charts: P Chart
Control Charts: P Chart
 
Control Charts: Xbar-S Chart
Control Charts: Xbar-S ChartControl Charts: Xbar-S Chart
Control Charts: Xbar-S Chart
 
Control Charts: I-MR Chart
Control Charts: I-MR ChartControl Charts: I-MR Chart
Control Charts: I-MR Chart
 
Control Charts: Finding the Right Control Chart
Control Charts: Finding the Right Control ChartControl Charts: Finding the Right Control Chart
Control Charts: Finding the Right Control Chart
 
Building a Scorecard
Building a ScorecardBuilding a Scorecard
Building a Scorecard
 
Control Phase Roadmap (Level 3)
Control Phase Roadmap (Level 3)Control Phase Roadmap (Level 3)
Control Phase Roadmap (Level 3)
 
Piloting Solutions: Build the Pilot Plan
Piloting Solutions: Build the Pilot PlanPiloting Solutions: Build the Pilot Plan
Piloting Solutions: Build the Pilot Plan
 
Piloting Solutions: The Process
Piloting Solutions: The ProcessPiloting Solutions: The Process
Piloting Solutions: The Process
 
Risk Assessment with a FMEA Tool
Risk Assessment with a FMEA ToolRisk Assessment with a FMEA Tool
Risk Assessment with a FMEA Tool
 
Prioritize Solutions with an Impact Matrix
Prioritize Solutions with an Impact MatrixPrioritize Solutions with an Impact Matrix
Prioritize Solutions with an Impact Matrix
 
Brainstorm Solutions with an Affinity Diagram
Brainstorm Solutions with an Affinity DiagramBrainstorm Solutions with an Affinity Diagram
Brainstorm Solutions with an Affinity Diagram
 
Brainstorm & Prioritize Solutions with a Workout
Brainstorm & Prioritize Solutions with a WorkoutBrainstorm & Prioritize Solutions with a Workout
Brainstorm & Prioritize Solutions with a Workout
 
Improve Phase Roadmap (Level 3)
Improve Phase Roadmap (Level 3)Improve Phase Roadmap (Level 3)
Improve Phase Roadmap (Level 3)
 

Recently uploaded

Kseniya Leshchenko: Shared development support service model as the way to ma...
Kseniya Leshchenko: Shared development support service model as the way to ma...Kseniya Leshchenko: Shared development support service model as the way to ma...
Kseniya Leshchenko: Shared development support service model as the way to ma...
Lviv Startup Club
 
The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...
Adam Smith
 
Meas_Dylan_DMBS_PB1_2024-05XX_Revised.pdf
Meas_Dylan_DMBS_PB1_2024-05XX_Revised.pdfMeas_Dylan_DMBS_PB1_2024-05XX_Revised.pdf
Meas_Dylan_DMBS_PB1_2024-05XX_Revised.pdf
dylandmeas
 
The effects of customers service quality and online reviews on customer loyal...
The effects of customers service quality and online reviews on customer loyal...The effects of customers service quality and online reviews on customer loyal...
The effects of customers service quality and online reviews on customer loyal...
balatucanapplelovely
 
CADAVER AS OUR FIRST TEACHER anatomt in your.pptx
CADAVER AS OUR FIRST TEACHER anatomt in your.pptxCADAVER AS OUR FIRST TEACHER anatomt in your.pptx
CADAVER AS OUR FIRST TEACHER anatomt in your.pptx
fakeloginn69
 
Cree_Rey_BrandIdentityKit.PDF_PersonalBd
Cree_Rey_BrandIdentityKit.PDF_PersonalBdCree_Rey_BrandIdentityKit.PDF_PersonalBd
Cree_Rey_BrandIdentityKit.PDF_PersonalBd
creerey
 
Putting the SPARK into Virtual Training.pptx
Putting the SPARK into Virtual Training.pptxPutting the SPARK into Virtual Training.pptx
Putting the SPARK into Virtual Training.pptx
Cynthia Clay
 
FINAL PRESENTATION.pptx12143241324134134
FINAL PRESENTATION.pptx12143241324134134FINAL PRESENTATION.pptx12143241324134134
FINAL PRESENTATION.pptx12143241324134134
LR1709MUSIC
 
The Parable of the Pipeline a book every new businessman or business student ...
The Parable of the Pipeline a book every new businessman or business student ...The Parable of the Pipeline a book every new businessman or business student ...
The Parable of the Pipeline a book every new businessman or business student ...
awaisafdar
 
VAT Registration Outlined In UAE: Benefits and Requirements
VAT Registration Outlined In UAE: Benefits and RequirementsVAT Registration Outlined In UAE: Benefits and Requirements
VAT Registration Outlined In UAE: Benefits and Requirements
uae taxgpt
 
Affordable Stationery Printing Services in Jaipur | Navpack n Print
Affordable Stationery Printing Services in Jaipur | Navpack n PrintAffordable Stationery Printing Services in Jaipur | Navpack n Print
Affordable Stationery Printing Services in Jaipur | Navpack n Print
Navpack & Print
 
Brand Analysis for an artist named Struan
Brand Analysis for an artist named StruanBrand Analysis for an artist named Struan
Brand Analysis for an artist named Struan
sarahvanessa51503
 
Memorandum Of Association Constitution of Company.ppt
Memorandum Of Association Constitution of Company.pptMemorandum Of Association Constitution of Company.ppt
Memorandum Of Association Constitution of Company.ppt
seri bangash
 
amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05
marketing317746
 
Unveiling the Secrets How Does Generative AI Work.pdf
Unveiling the Secrets How Does Generative AI Work.pdfUnveiling the Secrets How Does Generative AI Work.pdf
Unveiling the Secrets How Does Generative AI Work.pdf
Sam H
 
Project File Report BBA 6th semester.pdf
Project File Report BBA 6th semester.pdfProject File Report BBA 6th semester.pdf
Project File Report BBA 6th semester.pdf
RajPriye
 
Cracking the Workplace Discipline Code Main.pptx
Cracking the Workplace Discipline Code Main.pptxCracking the Workplace Discipline Code Main.pptx
Cracking the Workplace Discipline Code Main.pptx
Workforce Group
 
Discover the innovative and creative projects that highlight my journey throu...
Discover the innovative and creative projects that highlight my journey throu...Discover the innovative and creative projects that highlight my journey throu...
Discover the innovative and creative projects that highlight my journey throu...
dylandmeas
 
The-McKinsey-7S-Framework. strategic management
The-McKinsey-7S-Framework. strategic managementThe-McKinsey-7S-Framework. strategic management
The-McKinsey-7S-Framework. strategic management
Bojamma2
 
Maksym Vyshnivetskyi: PMO Quality Management (UA)
Maksym Vyshnivetskyi: PMO Quality Management (UA)Maksym Vyshnivetskyi: PMO Quality Management (UA)
Maksym Vyshnivetskyi: PMO Quality Management (UA)
Lviv Startup Club
 

Recently uploaded (20)

Kseniya Leshchenko: Shared development support service model as the way to ma...
Kseniya Leshchenko: Shared development support service model as the way to ma...Kseniya Leshchenko: Shared development support service model as the way to ma...
Kseniya Leshchenko: Shared development support service model as the way to ma...
 
The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...
 
Meas_Dylan_DMBS_PB1_2024-05XX_Revised.pdf
Meas_Dylan_DMBS_PB1_2024-05XX_Revised.pdfMeas_Dylan_DMBS_PB1_2024-05XX_Revised.pdf
Meas_Dylan_DMBS_PB1_2024-05XX_Revised.pdf
 
The effects of customers service quality and online reviews on customer loyal...
The effects of customers service quality and online reviews on customer loyal...The effects of customers service quality and online reviews on customer loyal...
The effects of customers service quality and online reviews on customer loyal...
 
CADAVER AS OUR FIRST TEACHER anatomt in your.pptx
CADAVER AS OUR FIRST TEACHER anatomt in your.pptxCADAVER AS OUR FIRST TEACHER anatomt in your.pptx
CADAVER AS OUR FIRST TEACHER anatomt in your.pptx
 
Cree_Rey_BrandIdentityKit.PDF_PersonalBd
Cree_Rey_BrandIdentityKit.PDF_PersonalBdCree_Rey_BrandIdentityKit.PDF_PersonalBd
Cree_Rey_BrandIdentityKit.PDF_PersonalBd
 
Putting the SPARK into Virtual Training.pptx
Putting the SPARK into Virtual Training.pptxPutting the SPARK into Virtual Training.pptx
Putting the SPARK into Virtual Training.pptx
 
FINAL PRESENTATION.pptx12143241324134134
FINAL PRESENTATION.pptx12143241324134134FINAL PRESENTATION.pptx12143241324134134
FINAL PRESENTATION.pptx12143241324134134
 
The Parable of the Pipeline a book every new businessman or business student ...
The Parable of the Pipeline a book every new businessman or business student ...The Parable of the Pipeline a book every new businessman or business student ...
The Parable of the Pipeline a book every new businessman or business student ...
 
VAT Registration Outlined In UAE: Benefits and Requirements
VAT Registration Outlined In UAE: Benefits and RequirementsVAT Registration Outlined In UAE: Benefits and Requirements
VAT Registration Outlined In UAE: Benefits and Requirements
 
Affordable Stationery Printing Services in Jaipur | Navpack n Print
Affordable Stationery Printing Services in Jaipur | Navpack n PrintAffordable Stationery Printing Services in Jaipur | Navpack n Print
Affordable Stationery Printing Services in Jaipur | Navpack n Print
 
Brand Analysis for an artist named Struan
Brand Analysis for an artist named StruanBrand Analysis for an artist named Struan
Brand Analysis for an artist named Struan
 
Memorandum Of Association Constitution of Company.ppt
Memorandum Of Association Constitution of Company.pptMemorandum Of Association Constitution of Company.ppt
Memorandum Of Association Constitution of Company.ppt
 
amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05
 
Unveiling the Secrets How Does Generative AI Work.pdf
Unveiling the Secrets How Does Generative AI Work.pdfUnveiling the Secrets How Does Generative AI Work.pdf
Unveiling the Secrets How Does Generative AI Work.pdf
 
Project File Report BBA 6th semester.pdf
Project File Report BBA 6th semester.pdfProject File Report BBA 6th semester.pdf
Project File Report BBA 6th semester.pdf
 
Cracking the Workplace Discipline Code Main.pptx
Cracking the Workplace Discipline Code Main.pptxCracking the Workplace Discipline Code Main.pptx
Cracking the Workplace Discipline Code Main.pptx
 
Discover the innovative and creative projects that highlight my journey throu...
Discover the innovative and creative projects that highlight my journey throu...Discover the innovative and creative projects that highlight my journey throu...
Discover the innovative and creative projects that highlight my journey throu...
 
The-McKinsey-7S-Framework. strategic management
The-McKinsey-7S-Framework. strategic managementThe-McKinsey-7S-Framework. strategic management
The-McKinsey-7S-Framework. strategic management
 
Maksym Vyshnivetskyi: PMO Quality Management (UA)
Maksym Vyshnivetskyi: PMO Quality Management (UA)Maksym Vyshnivetskyi: PMO Quality Management (UA)
Maksym Vyshnivetskyi: PMO Quality Management (UA)
 

Hypothesis Testing: Central Tendency – Non-Normal (Compare 1:1)

  • 1. Section & Lesson #: Pre-Requisite Lessons: Complex Tools + Clear Teaching = Powerful Results Hypothesis Testing: Central Tendency – Non-Normal (Compare 1:1) Six Sigma-Analyze – Lesson 21 An extension on hypothesis testing, this lesson reviews the Mann-Whitney test as a central tendency measurement for non-normal dist. Six Sigma-Analyze #20 – Hypothesis Testing: Central Tendency – Non-Normal (Compare 1:Standard) Copyright © 2011-2019 by Matthew J. Hansen. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted by any means (electronic, mechanical, photographic, photocopying, recording or otherwise) without prior permission in writing by the author and/or publisher.
  • 2. Why do we need hypothesis testing? o Remember, our project goal is to resolve a problem by first building a transfer function. • We don’t want to just alleviate symptoms, we want to resolve the root cause.  Remember Hannah? We don’t want to alleviate the arthritis pain in her leg, but heal the strep throat. • If we don’t know what the root cause is, then we need to build a transfer function.  By building a transfer function, we can know what changes (improvements) should fix the root cause. o Remember, the Transfer Function is defined as Y = f(X). • This is described as “output response Y is a function of one or more input X’s”. • It’s part of the IPO flow model where we described the IPO flow model as one or more inputs feeding into a process that transforms it to create a new output. o How does a transfer function fit with hypothesis testing? • Hypothesis testing tells us which X’s (inputs) are independently influencing the Y (output).  When we reject a null hypothesis, we’re building evidence proving which X’s are “guilty” of driving the Y.  We’ll compile all the evidence in the Improve phase of DMAIC and begin to fix those root causes. Copyright © 2011-2019 by Matthew J. Hansen. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted by any means (electronic, mechanical, photographic, photocopying, recording or otherwise) without prior permission in writing by the author and/or publisher. Y = f(X) Input (X) > Process > Output (Y)
  • 3. Review Hypothesis Testing: 4 Step Process o Remember, the 4 high-level steps for hypothesis testing begin/end with being practical: o As the heart of hypothesis testing, steps 2 & 3 can be drilled to the following 6 steps: Copyright © 2011-2019 by Matthew J. Hansen. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted by any means (electronic, mechanical, photographic, photocopying, recording or otherwise) without prior permission in writing by the author and/or publisher. 3 Practical Statistical Problem Problem Solution Solution    Practical Problem State the problem as a practical Yes/No question.  Statistical Problem Convert the problem to an analytical question identifying the statistical tool/method.  Practical Solution Interpret the analytical answer in a practical way. Statistical Solution Interpret the results of the hypothesis test with an analytical answer.  1. Define the objective. 2. State the Null Hypothesis (H0) and Alternative Hypothesis (Ha). 3. Define the confidence (1-α) and power (beta or 1-β). 4. Collect the sample data. 5. Calculate the P-value. 6. Interpret the results: accept or reject the null hypothesis (H0).
  • 4. Is the data type for both values discrete? What are you measuring? Is the data normal? SpreadCentral Tendency Compare 1:Standard 1 Proportion Test Compare 1:1 2 Proportion Test Compare 2+ Factors Chi2 Test Compare 1:Standard 1 Sample T Test Compare 1:1 2 Sample T Test or Paired T Test Compare 2+ Factors One-way ANOVA Test Compare 1:Standard 1 Sample Wilcoxon or 1 Sample Sign Compare 1:1 Mann-Whitney Test Compare 2+ Factors Mood’s Median Test or Kruskal-Wallis Test Compare 1:Standard 1 Variance Test Compare 1:1 2 Variance Test Compare 2+ Factors Test for Equal Variances Yes No Yes No Proportions Compare 1:1 Pearson Correlation or Fitted Line Plot Compare 2+ Factors Multiple Regression or General Linear Model Is the data type for both values continuous? Relationships No Yes Review Finding the Right Statistical Test o What statistical test do I use for my hypothesis testing? • The type of statistical test depends on the data to be tested, as described in the chart below: Copyright © 2011-2019 by Matthew J. Hansen. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted by any means (electronic, mechanical, photographic, photocopying, recording or otherwise) without prior permission in writing by the author and/or publisher. 4 Lesson Current
  • 5. Confidence Intervals (CI) Redefined o Remember, confidence intervals (CI) are an estimated upper/lower range of the mean. • The CI narrows when you add more samples: • Remember, statistics are intended to help you make inferences about a population.  A mean of 57 with a 95% confidence interval of 55 and 59 implies that although the sample mean is only 57, you can be 95% confident that the population mean will fall somewhere between 55 and 59. • The first step in hypothesis testing is to define the objective by asking “is there a difference…”  Statistical tests generally compare the different CIs between factors to see if a difference exists. Copyright © 2011-2019 by Matthew J. Hansen. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted by any means (electronic, mechanical, photographic, photocopying, recording or otherwise) without prior permission in writing by the author and/or publisher. 5 With fewer samples, the population mean falls within a wide interval. Add more samples and the population mean falls in a more narrow interval. With more samples, the more confident (narrow) the mean interval becomes. Factor A Factor B 2.5 2.75 3.0 3.25 3.5 Large overlap indicates the population mean may be the same for both groups; therefore there is no difference between them (high P-value). N = 20 Factor A Factor B 2.5 2.75 3.0 3.25 3.5 Small overlap indicates a smaller chance the population mean may be the same for both groups; therefore there is may be no difference between them (small P-value). N = 50 Factor A Factor B 2.5 2.75 3.0 3.25 3.5 No overlap indicates the population mean is different for both groups; therefore there is a difference between them (low or no P-value). N = 100
  • 6. Mann-Whitney Test: Introduction o When should I use it? • To compare median values from two random samples from two populations having similar shape and variation. • It’s also called the 2 Sample Rank test or 2 Sample Wilcoxon Rank Sum test. o How do I find it in Minitab? • Go to Stat > Nonparametrics > Mann-Whitney… o What are the inputs for the test? Copyright © 2011-2019 by Matthew J. Hansen. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted by any means (electronic, mechanical, photographic, photocopying, recording or otherwise) without prior permission in writing by the author and/or publisher. 6 Now The columns containing the continuous data to test. The desired confidence interval for the median. Defines how the test will compare the median values.
  • 7. Mann-Whitney Test: MetricC Example o Example: MetricC sample values • Background:  Use the arbitrary values in the “MetricC” column of the Minitab Sample Data file.  Copy/paste the values of MetricC and split them 50/50 into two new columns. – In this example, the first 50 were labeled “MetricC1” and the remaining 50 as “MetricC2”. • Practical Problem:  Is the median of MetricC1 equal to the median of MetricC2? • Statistical Problem:  State the null (H0) and alternative (Ha) hypotheses: – H0: η1 = η2 and Ha: η1 ≠ η2  Define the confidence (1-α) and power (1-β): – For confidence, we’ll accept the default of 95% (which means α = 5%) and power of 90% (which means β = 10%).  Type the statistical problem into Minitab: – In Minitab, go to Stat > Nonparametrics > Mann-Whitney… – In the “First Sample” box, select MetricC1 from the list of columns and MetricC2 as the “Second Sample”. – Ensure the “Confidence Level” is 95.0 and alternative is “not equal”. • Statistical Solution:  Refer to the session window results. – P-value is the “Test is significant at” value. – Since P-value is > 0.05 (α), then we fail to reject H0. • Practical Solution:  The sample is insufficient to prove that the median of MetricC1 is different than the median of MetricC2. Copyright © 2011-2019 by Matthew J. Hansen. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted by any means (electronic, mechanical, photographic, photocopying, recording or otherwise) without prior permission in writing by the author and/or publisher. 7 Now
  • 8. Practical Application o Refer to the critical metric (output Y) and at least 5 factors (input X’s) you identified in a previous lesson for applying to this hypothesis testing. • For any factor that is a continuous value, try applying the Mann-Whitney test.  To do this, you’ll need to compare at least two different sets of that same factor (e.g., across multiple periods of time, or by different locations, or by different groups, etc.).  A non-parametric test like this is ideal for non-normal distributions, but you can still run it even if your continuous value has a normal distribution.  Other factors in your organization can be used for this exercise. • Before running the Mann-Whitney Test, do the medians of the factors appear to be different? • After running the Mann-Whitney Test, are the medians of the factors statistically different? • If the answers to the above 2 questions are different, then how does that affect how you’d typically measure and communicate that factor in the organization?  For example, do the differences between the compared factors affect financial decisions (e.g., how people are compensated), or process changes (e.g., how the process may be modified), or other critical actions?  If so, then how should the results from this Mann-Whitney Test be used to influence your organization? – Should they change how the factors are compared (e.g., across different times, locations, groups, etc.)? – Should they change how the factor is measured? – Should they change how they react when they compare the metric this way? Copyright © 2011-2019 by Matthew J. Hansen. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted by any means (electronic, mechanical, photographic, photocopying, recording or otherwise) without prior permission in writing by the author and/or publisher. 8