Section 14.1 Summary

1. Nonparametric tests do not require the population to follow a particular distribution, such as the normal distribution. Because of this, nonparametric hypothesis tests are often called distribution-free hypothesis tests. There are advantages and disadvantages to using nonparametric tests instead of parametric tests.
2. The efficiency of a nonparametric hypothesis test is defined as the ratio of the sample size required for the corresponding parametric test to the sample size required for the nonparametric test, in order to achieve the same result (such as correctly rejecting the null hypothesis).