Option A (Incorrect): Nonparametric tests are often used when data contain outliers, as they do not rely on distributional assumptions.
Option B (Incorrect): Nonparametric tests are suitable for ranked or ordinal data, as they do not require the data to meet parametric assumptions.
Option C (Correct): A nonparametric test is least appropriate here because parametric tests can be applied when the sample size is large (50 observations) and the data follow a lognormal distribution. Parametric tests are more powerful in such cases, assuming the distributional requirements are met.
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For a sample of 50 observations, in which scenario is a nonparametric test least likely to be suitable? The data:
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Last updated: July 15, 2026 at 14:06
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A
include outliers.
28.6%
B
are ranked or ordinal.
14.3%
C
originate from a lognormal distribution.
57.1%
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For a sample of 50 observations, in which scenario is a nonparametric test least likely to be suitable? The data: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
