lesson

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What if you need to test a claim about a dataset packed with extreme outliers and heavy skew where a standard t-test completely fails?
When the Bell Curve Breaks
A standard t-test assumes your data comes from a symmetric bell curve, but real-world data like app load times or house prices is often heavily skewed. When distribution assumptions fail, we switch to a non-parametric testβa statistical method that makes no assumptions about the shape or parameters of the underlying population distribution.
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How can we test a claim about the population median without knowing the distribution's shape?
Turning Data into Signs
By definition, the population median (denoted Ξ·) divides a continuous distribution into two equal halves, meaning any single random observation has exactly a 50% chance of landing above Ξ· and a 50% chance of landing below Ξ·. In 1710, Scottish physician John Arbuthnot used this exact logic to analyze London birth records, creating the world's first recorded non-parametric hypothesis test.
Under the null hypothesis H0β:Ξ·=Ξ·0β, each observation xiβ is replaced by a positive sign (+) if xiβ>Ξ·0β or a negative sign (β) if xiβ<Ξ·0β. Because each data point independently has a probability p=0.5 of being positive, the total count of positive signs S follows a binomial distribution: SβΌB(n,0.5).
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What does a complete exam-style calculation look like from start to finish?
Worked Example: Streaming Latency
A tech company claims its median video buffering time is Ξ·0β=20 milliseconds. A consumer group suspects the median latency is actually higher, recording 10 independent tests: 22,19,28,20,31,25,27,18,35,24. Let's test this at the Ξ±=0.05 significance level.
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