What are Nonparametric Tests? In statistics, nonparametric tests are methods of statistical analysis that do not require a distribution to meet the required assumptions to be analyzed (especially if the data is not normally distributed). Due to this reason, they are sometimes referred to as distribution-free tests. Nonparametric tests serve as an alternative to parametric…
What is Nominal Data? In statistics, nominal data (also known as nominal scale) is a type of data that is used to label variables without providing any quantitative value. It is the simplest form of a scale of measure. Unlike ordinal data, nominal data cannot be ordered and cannot be measured. Dissimilar to interval or ratio…
What is Ordinal Data? In statistics, ordinal data are the type of data in which the values follow a natural order. One of the most notable features of ordinal data is that the differences between the data values cannot be determined or are meaningless. Generally, the data categories lack the width representing the equal increments…
What is Mean? Mean is an essential concept in mathematics and statistics. The mean is the average or the most common value in a collection of numbers. In statistics, it is a measure of central tendency of a probability distribution along median and mode. It is also referred to as an expected value. It is…
What is Sample Selection Bias? Sample selection bias is the bias that results from the failure to ensure the proper randomization of a population sample. The flaws of the sample selection process lead to situations where some groups or individuals in the population are less likely to be included in the sample. The presence of…
What is Range? In statistics and mathematics, range is the difference between the largest and smallest values in a dataset. The range is one of the measures of dispersion of data. Range in Finance In finance, the range is defined as a difference between the low and high prices of a security over a certain…
What is a Market-on-Close (MOC) Order? A market-on-close (MOC) order refers to a market order that is not subject to a limit. Traders execute market-on-close orders as close to the closing price of a stock as possible. It is placed either at the exact time of the market closing or slightly after the market closes….
What is Market Research? Market research refers to the process through which a company can determine the viability of a new product. It can be a new product or service or a variation or upgrade of an existing product. Through market research, a company can discover the target market and collate feedback on the level…
What is Market Penetration? Market penetration refers to a quantitative measure of the sales of a product or service compared to the total estimated market expressed as a percentage. It is useful in the development of strategies aimed to increase the total share of those products or services. Calculating market penetration forces managers to ascertain…
What is a Type II Error? In statistical hypothesis testing, a type II error is a situation wherein a hypothesis test fails to reject the null hypothesis that is false. In other words, it causes the user to erroneously not reject the false null hypothesis because the test lacks the statistical power to detect sufficient…
