Question

Consider the following scenario. An experimenter collects a random matched-pairs sample of binary data (1 or...

Consider the following scenario. An experimenter collects a random matched-pairs sample of binary data (1 or 0) and would like to conduct a sign test. Is a sign test a sensible choice? Explain why or why not.

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Answer #1

NO.It is not sensible to use a sign test in this case because the basic assumption of a sign test is that the random variable X should be continuous and here it is a pair of binary numbers. Also sign test is a substitute for a one sample t test which we use to test the mean of population where we have a value of Mu and we accordingly give signs to the sample values as '+' if the value is greater than Mu or '-' if the value is negative. Here as we do not have value of Mu nor we have the continuous values of sample variables sign test cannot be used.

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