DEFINITION
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.INVESTOPEDIA EXPLAINS
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

Chi Square Statistic
A measurement of how expectations compare to results. The data used in calculating ... 
Statistical Significance
A result that is not likely to occur randomly, but rather is likely to be attributable ... 
Nonparametric Method
A method commonly used in statistics to model and analyze ordinal or nominal ... 
Normal Distribution
A probability distribution that plots all of its values in a symmetrical fashion ... 
Statistics
A type of mathematical analysis involving the use of quantified representations, ... 
T Distribution
A type of probability distribution that is theoretical and resembles a normal ... 
Mean
The simple mathematical average of a set of two or more numbers. The mean for ... 
Standard Deviation
1. A measure of the dispersion of a set of data from its mean. The more spread ... 
Compound Annual Growth Rate  CAGR
The yearoveryear growth rate of an investment over a specified period of time. ... 
MeanVariance Analysis
The process of weighing risk against expected return. Mean variance analysis ...
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