Nominal scales are indicative of only numbers. Why are only non-parametric tests applicable?
The numbers have no arithmetic properties and act only as labels. The only measure of average which can be used is the mode because this is simply a set of frequency counts. Hypothesis tests can be carried out on data collected in the nominal form. The most likely would be the Chi-square test. However, it should be noted that the Chi-square is a test to determine whether two or more variables are associated and the strength of that relationship. It can tell nothing about the form of that relationship, where it exists, i.e. it is not capable of establishing cause and effect.
Hemlata,
I'd add multinomial logistic regression and loglinear models. The former gets you into the realms of directionality and multiple predictors, and the latter opens up possibilities if your predictors are also nominal (or ordinal).
Pat
Nominal scales are really categorical, like A, Z, D: Violate the requirement of equal intervals. Not even ordinal.
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