Summary
While a large p-value doesn’t guarantee that a probability model exists, or tell you which model might work, a small p-value provides a red light to save you from wasted effort.
We might be tempted to immediately test these data to see if they’re consistent with a normal probability model. However, before we try to test for a lack of fit with a specific probability model, it’s instructive to test the data to see if they’ll fit any probability model.
One caveat is needed. Since the Ramirez-Runger test depends upon the time-order sequence of the data, it should always be used with data in their native ordering. Specifically, it can’t be used on data that have been rearranged into a ranking where the values are placed in ascending or descending order.
So what happens next?
The Ramirez-Runger test provides a simple numerical test to quantify the lack of homogeneity contained in a data set. Since homogeneity is implicitly assumed by virtually every statistical analysis technique, the Ramirez-Runger test should be a starting point for your analysis.
When they’re not equivalent, it’s unreasonable to assume that the data came from a sequence of independent and identically distributed random variables. And when the data show evidence that they didn’t come from a sequence of independent and identically distributed random variables, the notion of a probability model vanishes. At this point, you should abandon all hope of ever fitting a reasonable probability model to your data.
When the p-value for the Ramirez-Runger test gets larger than 5% or 10%, you’ll have an inconclusive result. The Ramirez-Runger test uses both global and local measures of dispersion, but the fact that these are both based on summary statistics means that they can miss some signals of a lack of homogeneity within the data. Just because Example 2 had a Ramirez-Runger p-value of 0.238 didn’t mean that the X-chart in Figure 11 was going to show a predictable process.
The data in Figure 1 are 200 sequential values obtained over time from a single process. The average is 12.86, and the standard deviation statistic is s = 3.462. The histogram is shown in Figure 2.
With 199 and 123 degrees of freedom, our test statistic of 1.126 has a p-value of:
= FDIST(test stat., num. d.f., denom. d.f.)
= FDIST(1.126, 199, 123) = 0.238
Once we know that some unknown cause is changing our system, we must shift from using complex analysis techniques to a more fundamental approach. Rather than trying to compute our way around the lack of homogeneity, we need to find out when and why the process is changing. The primary technique for doing this is a process behavior chart.
When the p-value for the Ramirez-Runger test is small, you’ll know that you can’t fit a probability model to your data. Neither can you estimate process parameters nor compute confidence intervals, test hypotheses, or use any other statistical analysis techniques. Rather, you’ll need to use a more fine-grained approach, looking for the assignable causes of exceptional variation within the data themselves. And, of course, this will lead to the use of process behavior charts.
These data are not sufficiently well-behaved to be represented by a single probability model. However, that doesn’t keep your software from drawing a bell-shaped curve over the histogram as in Figure 8.
This test will quantify the chances that you can successfully fit any probability model to your data. By using this simple test to examine the assumptions behind all probability models, you can avoid making serious mistakes. This column will illustrate this test and explain why it works.
Example 1
So, what are the chances that we can fit a probability model to these data? These data were written in rows, and the 199 successive differences listed in Figure 6 have an average of 1.905.
A probability model is a limiting property for an infinite sequence of random variables that are independent and identically distributed. And a sequence of independent and identically distributed random variables will display the same amount of variation regardless of whether the computation is carried out globally or sequentially.
Figure 10 shows the X chart for Example 2. There, we see no evidence of a lack of homogeneity, which is consistent with the Ramirez-Runger test p-value of 0.238. This process shows no evidence of changes during the period covered. The average of 10.1 and standard deviation of 1.8 properly characterize the process outcomes.
So, while the process behavior chart remains the final arbiter of when a process is operated unpredictably, the Ramirez-Runger test provides a computation-based alternative that can keep you from making serious mistakes. If you’re not already starting your analysis with a process behavior chart, then the Ramirez-Runger test is the test to use before all other tests.