Which of the Following Statements About Nonparametric Methods Is Correct

question 67

Multiple Choice

Which of the following statements about nonparametric methods is correct?

• A)Nonparametric methods are only used in cases where parametric tests such as t or F do not exist.
• B)Nonparametric tests should always be used when one is available because they are easier to apply then their parametric counterparts.
• C)Nonparametric tests are useful alternatives to parametric tests such as t or F when certain assumptions required by parametric tests are violated.
• D)Nonparametric tests are only used if the data come from independent samples.

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Definitions:

Economies Of Scale

Exist when average costs fall as output increases.

Diseconomies Of Scale

Exist when average costs rise with output.

Marginal Costs

The cost associated with producing one additional unit of a product, useful for decision-making on production levels and pricing.

Constant Returns To Scale

When average costs are constant with respect to output level.