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Q 723. What is Non-parametric Analysis? In which type of industries is it mostly used? Highlight its advantages using some examples. Non parametric analysis is a type of statistical method that doesn’t rely on strict assumptions about data. This Data more flexible and work well for : · Ordinal data · Nominal data · Small sample sizes · Skewed data or outliers Industries Where Non-Parametric Analysis is Used and examples Industry Reason of using non-parametric Analysis Example Test mainly used Health care and pharmaceutical Can experience lot of non-normal data, small sample sizes, and ordinal variables. -Analyzing patient recovery times under different treatment. -The effectiveness of two drugs. -Patients satisfaction analysis. - Comparing adverse drug reaction among patients using 3 medications Kruskal-Wallis H Test Mann-Whitney U Test). Wilcoxon Signed-Rank Test Chi square test Retail and consumer behavior can handle diverse data types, such as customer preferences, purchasing habits, and survey responses. - Customer preference by by age group - Sales performance comparison - Discount strategy evaluation -Loyalty program impact -seasonal sales trend - correlation between spend Chi-Square Test Kruskal-Wallis Test Mann-Whitney U Test Wilcoxon Signed-Rank Test Friedman Test Spearman’s Rank Correlation Insurance or investment companies deal with often non-normal, skewed, or ordinal. Non-parametric methods are ideal for analyzing claims, customer behaviors, risk assessments, and portfolio performance in these sectors. - Comparing claim processing times - Customer satisfaction pre/post-policy change - Investment preferences by age group or employee’s categories -Portfolio performance by advisors - Correlation between premium and claims Kruskal-Wallis Test Wilcoxon Signed-Rank Test Chi square test Mann-Whitney U Test Spearman’s Rank Correlation Hotel industry The hotel industry often deals with complex non normally distributed data, ex: customer reviews /satisfaction -Analyzing guest satisfaction across multiple branches -Comparing room service ratings across branches - Measuring the impact of a new loyalty program - Analyzing guest preferences for room types - Evaluating staff performance pre/post training Kruskal-Wallis Test Wilcoxon Signed-Rank Chi-square Test Sign Test Education In Education always use in ordinal data -Evaluating teaching methods -comparing student performance across school -Comparing academic stress level Kruskal-Wallis Test Mann-Whitney U Test Spearman’s Rank Correlation Non-parametric analysis is a flexible and reliable method for analyzing data, especially when traditional techniques don’t work well. It’s ideal for uneven data, small samples, or ranked information. This approach is used in many industries to uncover valuable insights, even from irregular datasets.