Run Test with Interval or Ratio Scale Measurement
CASE ANALYSIS – 1
A study is conducted to test the randomness of the sample stock prices as given below.
Table-1: Input Data
Null hypothesis-H0: The stock price is random in nature.
Alternative Hypothesis- H1: The stock price is not random
Performing the Analysis with SPSS
For SPSS Version 11, click on Analyze ⇒ Nonparametric Tests ⇒ Runs
This will bring up the SPSS screen dialogue box as shown below.
After clicking Runs, this will bring up the SPSS screen dialogue box as shown below.
Select the variable and move it to Test Variable List box and click Mean.
Finally click OK.
The SPSS outputs are given in following tables.
Table-2: Runs Test
From the output, Z = -2.86
Reject the null hypothesis if p-value (Sig. (2-tailed)) ≤ 0.05
The p-value is 0.004 and it is less than 0.05 (5% level of significance), so we reject the null hypothesis and accept the alternative hypothesis. The randomness of the sample is therefore rejected.
SPSS Command (Interval or Ratio Scale Measurement)
- Click on ANALYZE at the SPSS menu bar (in older versions of SPSS, click on STATISTICS instead of ANALYZE.
- Click on NON-PARAMETRIC TEST followed by
- Select the concerned numeric variable and move it to TEST VARIABLE LIST box.
- Click MEAN or MEDIAN depending on the desired cut-off value.
- Click OK of the main dialogue box.