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Z-Test
Prof. Fisher has given a method of testing the significance of the correlation coefficient in small samples. According to this method the coefficient of correlation is transformed into Z and hence the name transformation. The statistic Z given by prof. Fisher is used to test:
a.Whether an observed value of r differs significantly from some hypothetical value or.
b.Whether two samples values of r differ significantly,
For testing whether r differs significantly from zero the t- test is preferable.
In order to apply the test we have to calculate Z and by applying Fisher transformation and then calculate the value of the standard normal variate.
Z- ε / 1/√n-3
Maxz=3x1-2x2 St x1 -x2>_0, 3x1-x2 _0
ONE SAMPLE RUNS TEST A number of methods have been developed fro judging the randomness of samples on the basis of the order in which teh observations are taken. It is
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Minimize: 60P + 120Q Subject to: 2P + 3Q >10 P + 4Q >12 P, Q> 0
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