Business Research Methods

⌘K
  1. Home
  2. Docs
  3. Business Research Methods
  4. Data Collection and Analy...
  5. Parametric and Non-Parametric Test for Testing Hypothesis

Parametric and Non-Parametric Test for Testing Hypothesis

Parametric tests are statistical tests that assume the data follows a known and specific distribution, usually a normal distribution.

Thank you for reading this post, don't forget to subscribe!
  • They require numerical data measured on an interval or ratio scale.
  • These tests use parameters such as the mean and standard deviation.

Examples include the t-test, z-test, ANOVA, and Pearson’s correlation. Parametric tests are generally more powerful when their assumptions are met.


Non-parametric tests are statistical tests that do not assume any specific distribution of the data.

  • They are useful when data is ordinal, categorical, or not normally distributed.
  • These tests are more flexible and can be used for small sample sizes or skewed data.

Examples include the Chi-square test, Mann–Whitney U test, Kruskal–Wallis test, and Spearman’s rank correlation.


Important Non-Parametric Tests for Hypothesis Testing

  • Chi-Square Test
  • Correlation
  • Regression Analysis
  • Time Series Analysis
  • Multivariate Analysis

Parametric TestsNon-Parametric Tests
Parametric tests assume that the data follows a normal or known distribution.Non-parametric tests do not assume any specific distribution of the data.
Parametric tests require quantitative data measured on an interval or ratio scale.Non-parametric tests can be used with ordinal, nominal, or non-normally distributed data.
Parametric tests use population parameters like the mean and standard deviation for analysis.Non-parametric tests rely on ranks, frequencies, or signs instead of population parameters.
Parametric tests are more powerful when their assumptions are satisfied.Non-parametric tests are less powerful but more flexible when assumptions are not met.
Larger sample sizes are generally required for parametric tests to be valid.Non-parametric tests can be used effectively with small sample sizes.
Examples include t-test, z-test, ANOVA, and Pearson correlation.Examples include Chi-square test, Mann–Whitney U test, Kruskal–Wallis test, and Spearman correlation.
Parametric tests provide more precise and reliable estimates when conditions are met.Non-parametric tests provide safer results when the data violates parametric assumptions.

How can we help?