To perform this test, select
.The 1-sample sign test is a nonparametric alternative of the 1-sample t-test because it does not require the data to come from a normally distributed population, as the t-test does. Furthermore, the 1-sample sign test does not make assumptions about population symmetry.
For example, a consultant for a large company analyzes its payroll to determine whether the company's median salary differs from the industry average of $45,000. Because the data are nonnormal and asymmetric, the consultant chooses the nonparametric 1-sample sign test.
H_{0}: η = η_{0} | The population median (η) equals the hypothesized median (η_{0}). |
H_{1}: η ≠ η_{0} | The population median (η) differs from the hypothesized median (η_{0}). |
H_{1}: η > η_{0} | The population median (η) is greater than the hypothesized median (η_{0}). |
H_{1}: η < η_{0} | The population median (η) is less than the hypothesized median (η_{0}). |