Difference between parametric and nonparametric test

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parametric vs nonparametric tests statistics differences

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Parametric vs. Nonparametric Tests

Core Definitions

FeatureParametricNonparametric
Distributional assumptionRequires data to follow a known distribution (usually normal)No distribution assumed ("distribution-free")
Data typeInterval or ratio (continuous)Ordinal, nominal, or non-normal continuous
Central measureMeanMedian or ranks
Statistical powerHigher (when assumptions met)Lower for same sample size
Sample sizeWorks well with moderate to large samplesBetter suited for small samples
Sensitivity to outliersHigh - outliers can distort resultsLow - rank-based methods are resistant

Key Assumptions for Parametric Tests

  1. Normality - the data (or residuals) are normally distributed
  2. Homogeneity of variance - groups have roughly equal variances (homoscedasticity)
  3. Independence - observations are independent of each other
  4. Scale - data must be at least interval-level
If any of these assumptions are violated, parametric results can be misleading.

Common Test Pairs (Parametric → Nonparametric Equivalent)

Parametric TestNonparametric EquivalentPurpose
One-sample t-testWilcoxon signed-rank / Sign testTest if a sample mean/median = a value
Independent samples t-testMann-Whitney U testCompare two independent groups
Paired t-testWilcoxon signed-rank testCompare two related/paired groups
One-way ANOVAKruskal-Wallis testCompare 3+ independent groups
Repeated measures ANOVAFriedman testCompare 3+ related groups
Pearson correlationSpearman / Kendall correlationMeasure association between variables

When to Use Each

Use parametric tests when:
  • Data is normally distributed (or sample size is large enough for the Central Limit Theorem to apply, typically n > 30)
  • You have interval or ratio data
  • Variances are roughly equal across groups
  • You want maximum statistical power
Use nonparametric tests when:
  • Data is clearly non-normal and sample size is small
  • Data is ordinal (e.g., Likert scales, rankings)
  • There are outliers you cannot justify removing
  • The median is more meaningful than the mean for your domain (e.g., income data, survival times)

Power Trade-off

Parametric tests are generally more powerful - they detect a true effect with a smaller sample size. The cost of using a nonparametric test when parametric assumptions ARE met is roughly a 5-15% reduction in efficiency. However, if you use a parametric test when assumptions are violated, you risk Type I errors (false positives) or completely invalid results.
A useful rule of thumb from Einstein Medical: if your assumptions are met, use parametric - the greater power is worth it. When in doubt with small samples and non-normal data, default to nonparametric.

Summary in One Line

Parametric tests are more powerful but demanding; nonparametric tests are more flexible but require larger samples to achieve the same confidence.
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