What is the difference between Parametric and Non parametric methods?

Question

This is for my statistic class.

Answer 1

Parametric methods are based on the data having a known distribution, e.g. normal, poisson, etc.

Non-parametric methods can be applied to any data, regardless of whether it has a known distribution.

Parametric methods have lower rates of Type I and Type II errors for the same number of observations.

Answer 2

Parametric has many meanings, maximum critically that a parametric approach is used while better than one answer is plausible or desireable (case in point in a device without commencing up values). considering econometrics is empirical, this is not likely you does not have a baseline. even nonetheless, parametric techniques will prepare once you're speaking in user-friendly terms a pair of dating, and not unavoidably with regard to the time sequence linked to that dating.