refers to the calculation or presentation of figures to summarize or characterize a set of data
Inferential Statistics
relates to the case when sample descriptions are used to generalize some information about the population
Population
collection of measurements made from a set of entities under study; collection of entities under study
Sample
part of the population
RandomSample
part of a population such that every unit has the same chance of being selected
parameter
a measure that characterizes a population (usually unknown)
Statistic
a measure that characterizes a sample
Parametric Tests
Tests about the population parameters
Based on specific assumption that the population where the sample came from a normal distribution
Parametric Test
Tests about the population parameters
Based on specific assumption that the population where the sample came from a normal distribution
Scale of measurement should be at least interval. (interval/ ratio)
Most inferential statistics assume normal distributions.
Extreme deviations from normality can distort the results of these tests.
The usual effect of violating the normality assumption is decrease in the Type I error rate (sounds like a good thing), but it often is accompanied by a substantial decrease in the powerofthetest.
Non-parametric Tests
The form of the joint distribution is not assumed.
Test and estimation procedures require relativelyfewerassumptions about the population distribution.
Usual assumption is that the random variables are independently and identically distributed.
Distribution free test
use methods that are based on functions of the sample observations whose corresponding random variable has a distribution which doesnotdepend on the specificdistribution function of the population from which the sample was drawn
Non-parametric test
tests for a hypothesis which is notaboutparameter values
Why study non parametric test
In many applications, there is no prior knowledge of the underlying distributions.
If the parametric assumptions are violated, its use can give misleading or wrong results.
For studies with small sample sizes, the normal approximation does not work well.
Non parametric tests are statistical methods that:
require very little model/distributional assumptions
robust/ sensitive to model/distributional assumptions
are sensitive to outliers in the data
Advantages of non parametric tests
Generally quick and easy to apply
Tests of hypotheses which are not statements about parameter values have noncounterpart in parametric statictics
Test statistic is mostly discrete in nature and its exact sampling distribution can often be determined by permutation or combinatorial formulas.
Advantages of non parametric tests
Little problem of violating assumptions and less chance for inappropriate application
May be applied when data are measured at a low scale of measurement, as for count data and ranks
Process of collecting and compiling sample data may be less expensive and less time consuming
Disadvantages of non parameteric test
Non-parametric tests are sometimes used when parametric procedures are more appropriate
They are difficult to compute by hand for large samples
Statistical tables are not widely available.
When to use non parametric tests
The hypothesis to be tested does not involve a population parameters
The data have been measured in a scale weaker than that required for the parametric procedure to be employed.
When to sue non parametric tests
the hypothesis to be tested does not involve are not met.
Results are needed in a hurry and a computer is not readily available, and calculations must be done by hand (small sample sizes)
Parametric tests are often derived in such a way that power is satisfied for an assumed specific probability distribution.
Non-parametric tests are inherently robust
Non-parametric tests, whenever they are applicable, are a great convenience but their use must be strictly evaluated
It is only after the use of a parametric test is carefully ruled out that the use of a nonparametric test is justified.