Question

1. List one strength of a nonparametric test. (2 pts)

2. If your goal is to not only explore a relationship between two variables but also predict one given the value of the other, which type of statistical test is most appropriate? (2 pts)

Answer 1

Solution:

Strength of nonparametric test:

• The nonparametric test referred to as distribution-free statistics because they are not based on a particular type of distribution in the population such as a normal distribution.
• It can be applied to a large number of situations
• The nonparametric test is generally more robust and not often seriously affected by extreme values in data such as outliers

Linear regression will tell whether there is a relationship between the regressors and the dependent variables. It will also tell whether this relation/association is significant or not (by observing the p-values or t-stat).

Therefore, Linear Regression is appropriate. It also helps in prediction