What are 'Nonparametric Statistics'
Nonparametric statistics refer to a statistical method wherein 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 a ranking or order of sorts. For example, a survey conveying consumer preferences ranging from like to dislike would be considered ordinal data.
Next Up
BREAKING DOWN 'Nonparametric Statistics'
Nonparametric statistics have gained appreciation due to their ease of use. As the need for parameters is relieved, the data becomes more applicable to a larger variety of tests. This type of statistics can be used without the mean, sample size, standard deviation, or the estimation of any other related parameters when none of that information is available.
RELATED TERMS

Nonparametric Method
A method commonly used in statistics to model and analyze ordinal ... 
Wilcoxon Test
The Wilcoxon test, which refers to either the Rank Sum test or ... 
Statistics
A type of mathematical analysis involving the use of quantified ... 
Statistical Significance
A result that is not likely to occur randomly, but rather is ... 
Building Ordinance Coverage
Insurance that covers the increased cost of repairing a damaged ... 
Zoning Ordinance
Written regulations and laws that define how property in specific ...
Related Articles

Investing
Understanding Statistics
Statistics provide the means to analyze data and then summarize it into a numerical form. 
Insights
Can Investors Trust Official Statistics?
The official statistics in some countries need to be taken with a grain of salt. Find out why you should be skeptical. 
Investing
What is Descriptive Statistics?
Descriptive statistics is the term applied to meaningful data analysis. 
Investing
RSquared
Learn more about this statistical measurement used to represent movement between a security and its benchmark. 
Trading
Trading With Gaussian Models Of Statistics
The entire study of statistics originated from Gauss and allowed us to understand markets, prices and probabilities, among other applications. 
Investing
Volatility
Learn more about this statistical measure and how it affects the dispersion of returns. 
Investing
Arbitrage Squeezes Profit From Market Inefficiency
This influential strategy capitalizes on the relationship between price and liquidity. 
Insights
World Bank Data For Dummies
Developing countries can't always afford to track the data crucial to setting the right economic policies and programs. That's where the World Bank steps in. 
Investing
Explaining Standard Error
Standard error is a statistical term that measures the accuracy with which a sample represents a population. 
Investing
Explaining the Empirical Rule
The empirical rule provides a quick estimate of the spread of data in a normal statistical distribution.
RELATED FAQS

Is the Bureau of Labor Statistics accurate?
Read this brief analysis of the accuracy of Bureau of Labor Statistics, including a summary of the types of reports issued ... Read Answer >> 
How does the Bureau of Labor Statistics determine the Consumer Price Index (CPI)?
Changes in the average price level of more than 200 goods and services across the U.S. economy are used to determine the ... Read Answer >> 
What does the Bureau of Labor Statistics do?
By collecting, analyzing and reporting on important economic data, the Bureau of Labor Statistics has become a critical information ... Read Answer >> 
What data does the Bureau of Labor Statistics collect?
Collected data includes unemployment numbers, inflation, prices, pay and benefits, time use of Americans, import/export numbers ... Read Answer >> 
What impact does a higher nonfarm payroll have on the forex market?
Traders are constantly monitoring various economic indicators to identify trends in economic growth. Some of the most watched ... Read Answer >> 
What is a relative standard error?
Find out how to distinguish between mean, standard deviation, standard error and relative standard error in statistical survey ... Read Answer >>