Which One of the Following Statements Correctly States the Difference

question 27

Multiple Choice

Which one of the following statements correctly states the difference between parametric and nonparametric statistical methods?

• A) Nonparametric tests do not make any distributional assumptions throughout the entire process.
• B) Nonparametric tests do not have the hypotheses based on population parameters or assumptions based on the distributions of populations from which the samples are drawn.
• C) Nonparametric tests involve only interval data whereas parametric tests involve only ordinal data.
• D) Nonparametric tests are involved with populations which have no parameters.
• E) None of these.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, giving shareholders the right to vote on corporate matters and receive dividends.

Dividend Payment

A distribution of a portion of a company's earnings to its shareholders, usually in the form of cash or stock.

Dissociation

A process authorized under the Revised Uniform Partnership Act that takes place whenever a partner is no longer associated with the running of the partnership firm.

RUPA

The Revised Uniform Partnership Act, which provides a legal framework for the operation of partnerships within the United States.