Statistics Parameters

It is characteristics of small parts of It is fixed measure which describes target

population, i.e. Sample population

It is a variable and unknown It is a fixed and unknown numerical value

Parametric Statistics

 It makes assumption about the parameters of the population distribution from which
one’s data are drawn
 It assumes underlying statistical distribution in the data (Normal distribution).
 Several Conditions of validity such as

a) Random independent sample

b) Interval and ratio scale
c) Normally distributed
d) Homogeneity of variance
must be met so that the result of a parametric test is reliable.
Examples are: Mean (from central tendency), Karl Pearson’s correlation, T-test, Z-test etc.

Non Parametric Statistics:

 It makes no assumption about the parameters of distribution

 Do not depend upon any distribution
 They can be applied even if parametric conditions of validity are not met.

Examples are: Mode/Median (from central tendency), Charles Spearman’s correlation, Chi-
square-(χ2) test etc.
Advantages of Non-parametric test

 Easier to learn and apply

 Based on model that specifies very general conditions
 No specific form of the distribution from which the sample was drawn are needed, hence
parametric test are known as distribution free test.

Disadvantages of Non-parametric test

 Losing precision
 Lower Power
 False sense of security
 Large sample size can be required to drawn conclusion with the same degree of
confidence (in comparison to parametric test)