- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 8. Hypothesis Testing
- Subject 12. Parametric vs. NonParametric Tests
CFA Practice Question
Which of the following statements is the LEAST accurate with respect to parametric and nonparametric tests?
A. A nonparametric test makes very few assumptions about the distribution of the underlying population.
B. Nonparametric tests cannot be used when data is expressed in terms of ranks.
C. A parametric test makes specific assumptions about the distribution of the underlying population.
Explanation: Nonparametric tests may certainly be used when data is expressed in terms of ranks.
User Contributed Comments 0
You need to log in first to add your comment.