19/June/2025 15:44
What is international business ? Explain.
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Parametric tests are statistical tests that assume a specific distribution for the population (usually a normal distribution). These tests use parameters such as the mean and standard deviation to make inferences about the population.
Examples: t-test, ANOVA, z-test, Pearson correlation
Non-parametric tests do not rely on any assumptions about the distribution of the population. These are used when data does not meet the assumptions of parametric tests, such as normality or equal variance.
Examples: Chi-square test, Mann-Whitney U test, Kruskal-Wallis test, Wilcoxon test
Criteria | Parametric Tests | Non-Parametric Tests |
---|---|---|
Assumptions | Requires normal distribution, homogeneity of variance | No strict assumptions about distribution |
Data Type | Interval or ratio scale | Ordinal, nominal, or non-normally distributed interval data |
Power | More powerful when assumptions are met | Less powerful but more flexible |
Examples | t-test, z-test, ANOVA | Chi-square, Wilcoxon, Mann-Whitney |
The t-test is a parametric test used to determine if there is a significant difference between the means of two groups. It is commonly used when sample sizes are small (n < 30).
A teacher wants to know whether two teaching methods produce different results. The average scores of two groups of students are compared using a two-sample t-test.
The Chi-square test is a non-parametric test used to determine whether there is a significant association between two categorical variables. It compares the observed frequencies with expected frequencies.
A researcher wants to know if gender is related to preference for a new product. A chi-square test can be used to test the independence of gender and product preference.
χ² = Σ (O - E)2 / E
Where O = Observed frequency, E = Expected frequency