Parametric and non-parametric tests
To make the generalisation about the population from the sample, statistical tests are uses.
These hypothetical testing related to differences are classified as parametric and
nonparametric tests. On one hand, the parametric test is one which has information about
population parameter while on the other hand, nonparametric tests, is one where the
researcher has no idea regarding the population parameter.
Definition of Parametric Test
The parametric test is the hypothesis test which provides generalisations 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.
Definition of Nonparametric Test
The 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.
Key Differences Between Parametric and Nonparametric Tests
The fundamental differences between parametric and nonparametric test are discussed in the
following points:
A statistical test, in which specific assumptions are made about the population parameter is
known as the parametric test. A statistical test used in the case of non-metric independent
variables is called nonparametric test.
In the parametric test, the test statistic is based on distribution. On the other hand, the test
statistic is arbitrary in the case of the nonparametric test.
In the parametric test, it is assumed that the measurement of variables of interest is done on
interval or ratio level. As opposed to the nonparametric test, wherein the variable of interest
are measured on nominal or ordinal scale.
In general, the measure of central tendency in the parametric test is mean, while in the case of
the nonparametric test is median.
In the parametric test, there is complete information about the population. Conversely, in the
nonparametric test, there is no information about the population.
The applicability of parametric test is for variables only, whereas nonparametric test applies
to both variables and attributes.
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For measuring the degree of association between two quantitative variables, Pearson’s
coefficient of correlation is used in the parametric test, while spearman’s rank correlation is
used in the nonparametric test.
For this flow chart, only take a look at the name of the tests under both:
To make a choice between parametric and the nonparametric test is not easy for a researcher
conducting statistical analysis. For performing hypothesis, if the information about the
population is completely known, by way of parameters, then the test is said to be parametric
test whereas, if there is no knowledge about population and it is needed to test the hypothesis
on population, then the test conducted is considered as the nonparametric test.
Parametric tests can perform well with skewed and non-normal distributions
Parametric analyses Sample size guidelines for non-normal data
1-sample t test Greater than 20
2-sample t test Each group should be greater than 15
If you have 2-9 groups, each group should be
greater than 15.
One-Way ANOVA
If you have 10-12 groups, each group should
be greater than 20.
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Parametric tests can perform well when the spread of each group is different
While nonparametric tests don’t assume that your data follow a normal distribution, they do
have other assumptions that can be hard to meet. For nonparametric tests that compare
groups, a common assumption is that the data for all groups must have the same spread
(dispersion). If your groups have a different spread, the nonparametric tests might not provide
valid results.
Statistical power
Parametric tests usually have more statistical power than nonparametric tests. Thus, you are
more likely to detect a significant effect when one truly exists.
Reasons to Use Nonparametric Tests
Area of study is better represented by the median
You have a very small sample size
If you don’t meet the sample size guidelines for the parametric tests and you are not confident
that you have normally distributed data, you should use a nonparametric test. When you have
a really small sample, you might not even be able to ascertain the distribution of your data
because the distribution tests will lack sufficient power to provide meaningful results.
You have ordinal data, ranked data, or outliers that you can’t remove
Typical parametric tests can only assess continuous data and the results can be significantly
affected by outliers. Conversely, some nonparametric tests can handle ordinal data, ranked
data, and not be seriously affected by outliers.
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