Applying ANOVA and Non-Parametric Tests

Paper Summary:

In this article, the writer notes that the challenge in business is to produce quality products or services efficiently. Ensuring quality involves customer satisfaction, employee involvement, and continuous improvement. The writer discusses a simulation, in which the assignment was to monitor on-time delivery of projects and client satisfaction. The writer looks at an analysis using ANOVA and nonparametric tests, determining the cause for the problem according to the test results and suggesting process improvements. The writer discusses the sequential process of how to use ANOVA, the chi-square goodness-of-fit test, and the Kruskal-Wallis test. The writer then notes that a manager can use statistical analysis to identify process changes and improvements to address quality issues. Finally, the writer looks at the importance of obtaining input from others in the work team who are more knowledgeable in statistics.

From the Paper:

"The first lesson this author learned, is that according to the simulation, the process of applying ANOVA and nonparametric tests is sequential. A manager should first analyze the descriptive statistics of the data, check the assumptions of ANOVA and nonparametric tests, then decide which test to use for analysis. In the end, he can make process improvements based on the results of the analysis. After gathering the data, a manager should check the assumptions of ANOVA and nonparametric tests. If he is not sure if the data has a normal distribution, then it is at that point that he would use the Kruskal-Wallis test. And before making a decision, he should perform the chi-square goodness of fit test to check the normality of the data so that he can determine if the population has a normal distribution. After performing the chi-square test, if the data shows that the chi-square test statistic is greater than the chi-square critical value, it means that the test statistic lies outside the acceptance area and the manager should reject the null hypothesis."

Sample of Sources Used:

• Research and Evaluation II (2008, June 2). Applying ANOVA and Nonparametric Tests Simulation. Retrieved June 2, 2008, from https://mycampus.phoenix.edu/secure/resource/vendors/tata/UBAMsims/research2/research2_anova_simulation.html

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