Wilcoxon Test

Dictionary Says

Definition of 'Wilcoxon Test'


The Wilcoxon test, which refers to either the Rank Sum test or the Signed Rank test, is a nonparametric test that compares two paired groups. The test essentially calculates the difference between each set of pairs and analyzes these differences. The Wilcoxon Rank Sum test can be used to test the null hypothesis that two populations have the same continuous distribution.

The Wilcoxon Signed Rank test assumes that there is information in the magnitudes and signs of the differences between paired observations. As the nonparametric equivalent of the paired student's t-test, the Signed Rank can be used as an alternative to the t-test when the population data does not follow a normal distribution.





Investopedia Says

Investopedia explains 'Wilcoxon Test'


The Rank Sum and Signed Rank tests were both proposed by American statistician Frank Wilcoxon in a groundbreaking research paper published in 1945. The tests laid the foundation for hypothesis testing of nonparametric statistics, which are used for population data that can be ranked but do not have numerical values, such as customer satisfaction or music reviews.
comments powered by Disqus
Hot Definitions
  1. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  2. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  3. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  4. IPO ETF

    An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public.
  5. IPO ETF

    An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public.
  6. Maritime Law

    A body of laws, conventions and treaties that governs international private business or other matters involving ships, shipping or crimes occurring on open water.
Trading Center