Parametric tests make assumptions that aspects of the data follow some sort of theoretical probability distribution. Non-parametric tests or distribution free methods do not, and are used when the ...

Parametric vs. Nonparametric VaR The nonparametric method ... Assuming stock price returns and volatility follow a normal distribution, the maximum loss within the specified confidence level ...

In statistical inference, or hypothesis testing, the traditional tests are called parametric ... distribution (such as the normal) except for a set of free parameters. Parametric tests are said to ...

Nonparametric distributions do not have parameters and cannot be defined by an equation as parametric distributions can. The types of questions that the Wilcoxon test can help answer include things ...

Explain why and when a non-parametric test should be used or may be preferred for simple comparison over a parametric method Explain the general principles and process of performing a non-parametric ...

Although nonparametric statistics have the advantage of having to meet few assumptions, they are less powerful than parametric statistics ... follow a normal distribution, the maximum loss ...