Q1. Difference between Parametric & Non-Parametric Tests?

Ans. The parametric test is one in which the information about the population parameter is
available. On the other hand, the nonparametric test is one where the researcher has no
idea regarding the population parameter.

Basis Parametric Test Non-Parametric Test

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

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

Measurement level Interval or ratio Nominal or ordinal

The measure of central Mean Median

tendency

Information about population Completely known Unavailable

Correlation test Pearson Spearman

Parametric Test

The parametric test is the hypothesis test which provides generalizations for making
statements about the mean of the parent population. A t-test is based on Student’s t-statistic,
which is often used in this regard.

The t-statistic rests on the underlying assumption that there is a normal distribution of
variables and the mean is 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.

Non-Parametric Test

The nonparametric test is defined as the hypothesis test which is not based on underlying
assumptions, i.e. it does not require the 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 & Non-Parametric Test

 ● 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 a 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
variables of interest are measured on a nominal or ordinal scale.

● 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 the parametric test is for variables only, whereas the
nonparametric test applies to both variables and attributes.

● 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.

Q2. Explain the Chi Square Test?

Ans 2.

Meaning:

A chi-square (χ2) statistic is a test that measures how a model compares to actual observed
data. The data used in calculating a chi-square statistic must be random, raw, mutually
exclusive, drawn from independent variables, and drawn from a large enough sample. For
example, the results of tossing a fair coin meet these criteria.

Chi-square tests are often used in hypothesis testing. The chi-square statistic compares the
size of any discrepancies between the expected results and the actual results, given the size
of the sample and the number of variables in the relationship.

The Formula for Chi-Square is:

Usability:

Chi-square is a statistical test used to examine the differences between categorical variables
from a random sample to judge the goodness of fit between expected and observed results.

A chi-square test is used to help determine if observed results are in line with expected
results, and to rule out that observations are due to chance. A chi-square test is appropriate
for this when the data being analyzed is from a random sample, and when the variable in
question is categorical. A categorical variable consists of selections such as type of car,
race, educational attainment, male vs. female, how much somebody likes a political
candidate (from very much to very little), etc.

Advantages:

● Can test association between variables

● Identifies differences between observed and expected values

Disadvantages:

● Can't use percentages

● Data must be numerical
● The number of observations must be 20+
● The test becomes invalid if any of the expected values are below 5
● Quite complicated to get right - a difficult formula

Interpretation for Chi-Square Test:

If your chi-square calculated value is greater than the chi-square critical value, then you
reject your null hypothesis. If your chi-square calculated value is less than the chi-square
critical value, then you "fail to reject" your null hypothesis.

Q3. Explain F-Test?

Ans 3.

Meaning:
F test is a statistical test that is used in hypothesis testing to check whether the variances of
two populations or two samples are equal or not. In an f test, the data follows an f
distribution. This test uses the f statistic to compare two variances by dividing them. An f test
can either be one-tailed or two-tailed depending upon the parameters of the problem. The F
value obtained after conducting an F test is used to perform the one-way ANOVA (analysis
of variance) test.

F test can be defined as a test that uses the f test statistic to check whether the variances of
two samples (or populations) are equal to the same value. To conduct an f test, the
population should follow an f distribution and the samples must be independent events. On
conducting the hypothesis test, if the results of the f test are statistically significant then the
null hypothesis can be rejected otherwise it cannot be rejected.

Formula:

Usability:

The F-test is used by a researcher to carry out the test for the equality of the two population
variances. If a researcher wants to test whether or not two independent samples have been
drawn from a normal population with the same variability, then he generally employs the
F-test.

Advantages:

● F-tests are surprisingly flexible because you can include different variances in the
ratio to test a wide variety of properties.
● F-tests can compare the fits of different models, test the overall significance in
regression models, test specific terms in linear models, and determine whether a set
of means are all equal.
● In F-test, we do not need to pre-specify which treatments are to be compared, and
we do not need to adjust for making multiple comparisons.

Disadvantages:

● In F-test, if we reject the null hypothesis, we do not know which treatments can be
said to be significantly different from the others.

Interpretation of F-Test:
In F-Test the p-value for the F-test is compared to the significance level. If the p-value is less
than the significance level, your sample data provide sufficient evidence to conclude that
your regression model fits the data better than the model with no independent variables. This
finding is good news because it means that the independent variables in your model improve
the fit.

Q4. Explain T-Test?

Ans 4.

Meaning:

A t-test is a statistical test that is used to compare the means of two groups. It is often used
in hypothesis testing to determine whether a process or treatment has an effect on the
population of interest, or whether two groups are different from one another.

Formula:

Usability:

A T-test is used to determine if there is a significant difference between the means of two
groups, which may be related to certain features. It is mostly used when the data sets, like
the data set recorded as the outcome from flipping a coin 100 times, would follow a normal
distribution and may have unknown variances. A t-test is used as a hypothesis testing tool,
which allows testing of an assumption applicable to a population.

Advantages:

● The results achieved after the t-test are useful for concluding if they are correct, they
can be applied to the entire population.
● It is very easy to interpret the output of independent samples. The output tells you
how different the mean of one sample is from the mean of another group.
● It is easy to calculate data from two samples with the aid of a computer.
 ● The t-test formula for independent samples is easy to understand. This makes it easy
to know what is going on without needing much statistical training.

Disadvantages:

● Getting the subjects for the sample data is very difficult and also a very expensive
part of the research process.
● Although you might not worry about individual differences between the group data
sets, there is still an individual difference between the groups, and not every sample
will react the same way, thus creating a small amount of noise.
● The T-test cannot be used for multiple comparisons because it results in type I errors.
When conducting a paired t-test among a group of samples, it will be difficult to reject
the null hypothesis.

Interpretation of T-test:

Higher values of the t-value, also called t-score, indicate that a large difference exists
between the two sample sets. The smaller the t-value, the more similarity exists between the
two sample sets.

● A large t-score indicates that the groups are different.

● A small t-score indicates that the groups are similar.

Q5. Explain Z-test?

Ans 5.

Meaning:

Z test is a statistical test that is conducted on data that approximately follows a normal
distribution. The z test can be performed on one sample, two samples, or on proportions for
hypothesis testing. It checks if the means of two large samples are different or not when the
population variance is known.

A z test can further be classified into left-tailed, right-tailed, and two-tailed hypothesis tests
depending upon the parameters of the data.

Formula:
Usability:

A z test is a test that is used to check if the means of two populations are different or not
provided the data follows a normal distribution. For this purpose, the null hypothesis and the
alternative hypothesis must be set up and the value of the z test statistic must be calculated.
The decision criterion is based on the z critical value.

A z test is conducted on a population that follows a normal distribution with independent data
points and has a sample size that is greater than or equal to 30. It is used to check whether
the means of two populations are equal to each other when the population variance is
known. The null hypothesis of a z test can be rejected if the z test statistic is statistically
significant when compared with the critical value.

Advantages:

● It is a straightforward and reliable test.

● A Z-score can be used for a comparison of raw scores obtained from different tests.
● While comparing a set of raw scores, the Z-score considers both the average value
and the variability of those scores.

Disadvantages:

● Z-test requires a known standard deviation which is not always possible.

● It cannot be conducted with a smaller sample size (less than 30).

Interpretation of Z-test:

The value of the z-score tells you how many standard deviations you are away from the
mean. If a z-score is equal to 0, it is on the mean.

A positive z-score indicates the raw score is higher than the mean average. For example, if a
z-score is equal to +1, it is 1 standard deviation above the mean. A negative z-score reveals
the raw score is below the mean average. For example, if a z-score is equal to -2, it is 2
standard deviations below the mean.