Parametric and Nonparametric Test: By: Sai Prakash MBA Insurance Management Pondicherry University

Download as pdf or txt
Download as pdf or txt
You are on page 1of 10

Parametric and

Nonparametric Test

By:
Sai Prakash
MBA Insurance
Management
Pondicherry University
Parametric Test

∗ If the information about the population is completely


known by means of its parameters then statistical test is
called parametric test

∗ Eg: t- test, f-test, z-test, ANOVA


Nonparametric test

∗ If there is no knowledge about the population or


paramters, but still it is required to test the hypothesis of
the population. Then it is called non-parametric test

∗ Eg: mann-Whitney, rank sum test, Kruskal-Wallis test


Classification Of hypothesis

Parametric test Non Parametric test

mann-Whitney, rank sum


t- test, f-test, z-test, ANOVA
test, Kruskal-Wallis test
Difference between parametric and Non
parametric
Parametric Non Parametric

Information about population is No information about the population is


completely known available

Specific assumptions are made regarding No assumptions are made regarding the
the population population

Null hypothesis is made on parameters of The null hypothesis is free from


the population distribution parameters
Difference between parametric and Non
parametric
Parametric Non Parametric

Test statistic is based on the distribution Test statistic is arbritary

Parametric tests are applicable only for It is applied both variable and artributes
variable

No parametric test excist for Norminal Non parametric test do exist for norminal
scale data and ordinal scale data

Parametric test is powerful, if it exist It is not so powerful like parametric test


Advantages of non parametric test

∗ Non parametric test are simple and easy to understand


∗ It will not involve complecated sampling theory
∗ No assumption is made regarding the parent population
∗ This method is only available for norminal scale data
∗ This method are easy applicable for artribute dates.
Disadvantages of non parametric test

∗ it can be applied only for norminal or ordinal scale


∗ For any problem, if any parametric test exist it is highly
powerful.
∗ Nonparametric methods are not so efficient as of
parametric test
∗ No nonparametric test available for testing the interaction
in analysis of variance model.
Thank you....

You might also like