Discuss the assumptions of parametric statistical testing versus the assumptions of nonparametric tests. Describe the differences in the distributions of the data. Discuss when a researcher would select a nonparametric approach and when they would select parametric tests for their data set. Does it matter what type of variables has been collected in the dataset? Requirements:

The assumptions underlying parametric statistical testing differ from those of nonparametric tests. Parametric tests typically assume that the data are normally distributed, that the variances of different groups are equal, and that the observations within each group are independent. Nonparametric tests, on the other hand, do not make any assumptions about the shape of the distribution or the equal variances. Moreover, they can be used even when the data violate the assumptions of parametric tests.

One key distinction between the two types of tests lies in the nature of the data distributions they can handle. Parametric tests assume that the data are distributed according to a specific parametric model, often the normal distribution. In other words, parametric tests make assumptions about the underlying population from which the sample was drawn. Consequently, these tests are more powerful and can provide more precise results when the assumptions are met. However, they can be less accurate and yield misleading results when the assumptions are violated.

Nonparametric tests, on the other hand, are distribution-free, meaning they do not require specific assumptions about the shape of the distribution. This makes nonparametric tests more robust and applicable in a wider range of scenarios. They are particularly useful when the data do not follow a normal distribution or when the variances are not equal. By not assuming any specific distribution, nonparametric tests provide a more flexible framework for analyzing data.

The decision on whether to select a parametric or nonparametric approach depends on multiple factors. Firstly, it depends on the nature of the data and whether the assumptions required for parametric tests are met. If the assumptions are met, parametric tests are usually preferred because they have higher statistical power and provide more precise estimates. On the other hand, when the assumptions are violated, nonparametric tests are more appropriate as they do not rely on these assumptions and can still yield reliable results.

Additionally, the sample size plays a role in the decision. Generally, parametric tests perform well with large sample sizes, as the Central Limit Theorem ensures that the sampling distribution will approximate a normal distribution. Nonparametric tests, however, tend to be more effective with smaller sample sizes as they do not rely on assumptions about the shape of the distribution. Therefore, researchers with small sample sizes or skewed data may opt for nonparametric tests.

The type of variables collected in the dataset also influences the choice between parametric and nonparametric tests. Parametric tests are designed for analyzing continuous data or variables measured on an interval or ratio scale. Nonparametric tests, on the other hand, can handle categorical or ordinal variables, such as rank ordering or qualitative data. Therefore, if the variables in the dataset are not continuous or do not have a clear measurement scale, nonparametric tests are more appropriate.

In conclusion, parametric and nonparametric tests differ in their assumptions and the types of data distributions they can handle. Parametric tests assume normality, equal variances, and independence, while nonparametric tests are distribution-free and less restrictive in their assumptions. Researchers should consider the nature of their data, sample size, and the type of variables collected when deciding which approach to use. Parametric tests are preferred when the assumptions are met and for continuous variables, while nonparametric tests are more suitable for non-normal or categorical data.

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