Class Notes
Class Notes
The normal family of distributions all have the same general shape and are
parameterized by mean and standard deviation. That means that if the
mean and standard deviation are known and if the distribution is normal, the
probability of any future observation lying in a given range is known.
Suppose we have a sample of 99 test scores with a mean of 100 and a
standard deviation of 1. If we assume all 99 test scores are random
observations from a normal distribution, then we predict there is a 1%
chance that the 100th test score will be higher than 102.365 (that is, the
mean plus 2.365 standard deviations) assuming that the 100th test score
comes from the same distribution as the others. Parametric statistical
methods are used to compute the 2.365 value above, given 99 independent
observations from the same normal distribution.
2) Making assumptions
The parametric test makes assumptions about the population. It needs the
parameters that are connected to the normal distribution that is used in the
analysis, and the only way to know these parameters is to have some
knowledge about the population. On the other hand, a nonparametric test,
as the name indicates, doesn’t rely on any parameters and therefore doesn’t
assume anything about the population.
The basis for the statistic analysis that will be performed on the data, in the
case of parametric tests, is probabilistic distribution. On the other hand, the
basis for nonparametric tests doesn’t exist – it’s completely arbitrary. This
results in more flexibility and makes it easier to fit the hypothesis with the
collected data.