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Investments glossary

Nonparametric Statistics


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Quotes of the day:

Better stop short than fill to the brim. Oversharpen the blade, and the edge will soon blunt. Amass a store of gold and jade, and no one can protect it. Claim wealth and titles, and disaster will follow. Retire when the work is done. This is the way of heaven.

— Tao Te Ching

Nonparametric statistics refer to a statistical method in which the data is not required to fit a normal distribution. Nonparametric statistics uses data that is often ordinal, meaning it does not rely on numbers, but rather on a ranking or order of sorts. For example, a survey conveying consumer preferences ranging from like to dislike would be considered ordinal data.

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