1.

) Probability

- is the measure of the likelihood that an event will occur in a Random Experiment. Probability is
quantified as a number between 0 and 1, where, loosely speaking, 0 indicates impossibility and 1
indicates certainty. The higher the probability of an event, the more likely it is that the event will occur.

Example:

A simple example is the tossing of a fair (unbiased) coin. Since the coin is fair, the two outcomes
(“heads” and “tails”) are both equally probable; the probability of “heads” equal the probability of
“tails”; and since no other outcomes are possible, the probability of either “heads” or “tails” is 1/2
(which could also be written as 0.5 or 50%).

2.) Hypothesis

-is a speculation or theory based on insufficient evidence that lends itself to further testing and
experimentation. With further testing, a hypothesis can usually be proven true or false. Let's look at an
example. Little Susie speculates, or hypothesizes, that the flowers she waters with club soda will grow
faster than flowers she waters with plain water. She waters each plant daily for a month (experiment)
and proves her hypothesis true.

 A null hypothesis is a hypothesis that says there is no statistical significance between the
two variables in the hypothesis. It is the hypothesis that the researcher is trying to disprove.
A researcher is challenged by the null hypothesis and usually wants to disprove it, to
demonstrate that there is a statistically-significant relationship between the two variables in
the hypothesis.
 An alternative hypothesis simply is the inverse, or opposite, of the null hypothesis. It is
usually taken to be that the observations are the result of a real effect (with some amount
of chance variation superposed).
3.) Parametric Test

-is the hypothesis test which provides generalizations for making statements about the mean of the
parent population. A t-test based on Student’s t-statistic, which is often used in this regard. The t-
statistic rests on the underlying assumption that there is the normal distribution of variable and the
mean in known or assumed to be known. The population variance is calculated for the sample. It is
assumed that the variables of interest, in the population are measured on an interval scale.

4.) Nonparametric Test

-is defined as the hypothesis test which is not based on underlying assumptions, i.e. it does not require
population’s distribution to be denoted by specific parameters. The test is mainly based on differences
in medians. Hence, it is alternately known as the distribution-free test. The test assumes that the
variables are measured on a nominal or ordinal level. It is used when the independent variables are non-
metric.
 BASIS FOR
PARAMETRIC TEST NONPARAMETRIC TEST
COMPARISON

Meaning A statistical test, in which A statistical test used in the case

specific assumptions are made of non-metric independent
about the population parameter variables, is called non-parametric
is known as parametric test. test.

Basis of test Distribution Arbitrary

statistic

Measurement level Interval or ratio Nominal or ordinal

Measure of central Mean Median

tendency

Information about Completely known Unavailable

population

Applicability Variables Variables and Attributes

Correlation test Pearson Spearman