Which of the Following Statements About Nonparametric Tests Is False

question 187

Multiple Choice

Which of the following statements about nonparametric tests is false?

• A) We can safely employ nonparametric tests even when we know nothing at all about the populations from which sample data are being drawn.
• B) We can conduct nonparametric tests with nominal data.
• C) We can conduct nonparametric tests with ordinal data.
• D) We can only conduct nonparametric tests with data of a higher order than nominal or ordinal.
• E) None of these.

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Definitions:

Pigouvian Tax

A tax imposed on activities that generate negative externalities, intended to correct an inefficient market outcome by internalizing the external costs.

Efficient Level

A point at which resources are allocated in the most effective manner, maximizing output without wasting resources.

Excludable

A characteristic of a good or service that allows its owner to prevent others from using it without permission.

Nonrival

A characteristic of a good whereby one person's consumption does not diminish the availability of the good for consumption by others.