parametric and non-parametric test

Introduction
In the literal meaning of the terms, a parametric statistical test is one that makes
assumptions about the parameters (defining properties) of the population distribution(s)
from which one's data are drawn,

While a non-parametric test is one that makes no such assumptions. In this strict sense,
"non-parametric" is essentially a null category, since virtually all statistical tests assume
one thing or another about the properties of the source population(s).
Parametric Tests
A parameter in statistics refers to an aspect of a population, as opposed to a statistic, which
refers to an aspect about a sample.

For example, the population mean is a parameter, while the sample mean is a statistic. A
parametric statistical test makes an assumption about the population parameters and the
distributions that the data came from. These types of test includes Student’s T tests and
ANOVA tests, which assume data is from a normal distribution.
Cont...
➔ Parametric tests normally involve data expressed in absolute numbers or values rather
than ranks.
➔ The parametric statistical test operates under certain conditions.
➔ Since these conditions are not ordinarily tested, they are assumed to hold valid. The
meaningfulness of the results of a parametric test depends on the validity of the
assumption.
➔ Proper interpretation of parametric test based on normal distribution also assumes that
the scene being analysed results from measurement in at least an interval scale.
➔ Let us try to understand the term population. Population refers to the entire group of
people which a researcher intends to understand in regard to a phenomenon.
Cont...
➔ The study is generally conducted on a sample of the said population and the obtained
results are then applied to the larger population from which the sample was selected.
➔ Tests like t, z, and F are called parametrical statistical tests.
➔ Parametric tests are useful as these tests are most powerful for testing the significance
or trustworthiness of the computed sample statistics. However, their use is based upon
certain assumptions. These assumptions are based on the nature of the population
distribution and on the way the type of scale is used to quantify the data measures.
what is a scale and its types
There are four types of scales used in measurement viz., nominal scale, ordinal scale,
interval scale, and ratio scale.

Nominal scale deals with nominal data or classified data such as for example the
population divided into males and females. There is no ordering of the data in that it has no
meaning when we say male > female. These data are also given Parametric and
Nonparametric Statistics arbitrary labels such as m / f and 1 //0 . These are also called as
categorical scale , that is these are scales with values that are in terms of categories (i.e.
they are names rather than numbers).
Cont...
Ordinal scale deals with interval data. These are in certain order but the differences
between values are not important. For example, degree of satisfaction ranging in a 5 point
scale of 1 to 5, with 1 indicating least satisfaction and 5 indicating high satisfaction.

Interval scale deals with ordered data with interval. This is a constant scale but has no
natural zero. Differences do make sense . Example of this kind of data includes for
instance temperature in Centigrade or Fahrenheit. The dates in a calendar. Interval scale
possesses two out of three important requirements of a good measurement scale, that is,
magnitude and equal intervals but lacks the real or absolute zero point.

Ratio scale deals with ordered, constant scale with a natural zero. Example of this type of
data include for instance, height, weight, age, length etc.
Assumptions of Parametric Statistics
Parametric tests like, ‘t and f’ tests may be used for analysing the data which satisfy the
following conditions :

➔ The population from which the sample have been drawn should be normally
distributed.
➔ Normal Distributions refer to Frequency distribution following a normal curve, which
is infinite at both the ends.
➔ The variables involved must have been measured interval or ratio scale.
➔ Variable and its types: characteristic that can have different values.
Types of Variables
➔ Dependent Variable: Variable considered to be an effect; usually a measured variable.
➔ Independent Variable: Variable considered being a cause.
● The observation must be independent. The inclusion or exclusion of any case in the
sample should not unduly affect the results of study.
● These populations must have the same variance or, in special cases, must have a
known ratio of variance. This we call homosedasticity.
● The samples have equal or nearly equal variances. This condition is known as
equality or homogeneity of variances and is particularly important to determine when
the samples are small.
● The observations are independent. The selection of one case in the sample is not
dependent upon the selection of any other case.
Non-parametric
➔ In statistics, nonparametric tests are methods of statistical analysis that do not require
a distribution to meet the required assumptions to be analyzed (especially if the data
is not normally distributed).
➔ Due to this reason, they are sometimes referred to as distribution-free tests.
➔ Nonparametric tests serve as an alternative to parametric tests such as T-test or
ANOVA that can be employed only if the underlying data satisfies certain criteria and
assumptions.
➔ Nonparametric tests are used as an alternative method to parametric tests, not as their
substitutes. In other words, if the data meets the required assumptions for performing
the parametric tests, the relevant parametric test must be applied.
Assumptions of Nonparametric Statistics
➔ Where sample size is quite small. If the size of the sample is as small as N=5 or N=6, the
only alternative is to make use of non-parametric tests.
➔ When assumption like normality of the distribution of scores in the population are
doubtful, we use non-parametric tests.
➔ When the measurement of data is available either in the form of ordinal or nominal scales
or when the data can be expressed in the form of ranks or in the shape of + signs or – signs
and classification like “good-bad”, etc., we use non-parametric statistics.
➔ The nature of the population from which samples are drawn is not known to be normal.
➔ The variables are expressed in nominal form.
➔ The data are measures which are ranked or expressed in numerical scores which have the
strength of ranks.
Types of Tests
Nonparametric tests include numerous methods and models. Below are the most common
tests and their corresponding parametric counterparts:

1. Mann-Whitney U Test

The Mann-Whitney U Test is a nonparametric version of the independent samples t-test.

2. Wilcoxon Signed Rank Test

The Wilcoxon Signed Rank Test is a nonparametric counterpart of the paired samples
t-test. The test compares two dependent samples with ordinal data.
Cont...
3. The Kruskal-Wallis Test

The Kruskal-Wallis Test is a nonparametric alternative to the one-way ANOVA. The