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Investments glossary

Nonparametric Method


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Quotes of the day:

Reality is the crutch for people who can\'t cope with drugs.

— Lily Tomlin

Nonparametric method refers to a type of statistic that does not require that the population being analyzed meet certain assumptions, or parameters. Well-known statistical methods such as ANOVA, Pearson’s correlation, t test, and others provide valid information about the data being analyzed only if the underlying population meets certain assumptions. One of the most common assumptions is that the population data have a normal distribution.


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