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- HOW TO DETERMINE THE APPROPRIATE TOOL WHEN:VARIANCE IS UNKNOWN
- On the other hand, when the Population Variance is Unknown, the appropriate test statistic to used is t-test.
- What is a t-test?A t-test is a type of inferential statistic used to determine if there is a significant difference between the means of two groups, which may be related in certain features.
- HOW TO DETERMINE THE APPROPRIATE TOOL WHEN:VARIANCE IS UNKNOWN
- REMEMBER:T-test is the appropriate tool to used when:The population standard deviation (σ) is unknown.The sample standard deviation (s) is known.The population is normal or nearly normally distributed.The sample size is less than 30 (n<30).
- HOW TO DETERMINE THE APPROPRIATE TOOL WHEN:VARIANCE IS UNKNOWN
- Lastly, when the Central Limit Theorem (CLT) is used, the appropriate test statistic is using z-test by replacing population standard deviation (σ) by sample standard deviation (s) in the formula.
- HOW TO DETERMINE THE APPROPRIATE TOOL WHEN:CENTRAL LIMIT THEOREM
- REMEMBER:Z-test is the appropriate tool to used in central limit theorem when:The sample standard deviation (s) may be used as an estimate of the population standard deviation (σ) when the value of σ is unknown.
- HOW TO DETERMINE THE APPROPRIATE TOOL WHEN:CENTRAL LIMIT THEOREM
- Z-testn ≥ 30, σ is knownn ≥ 30, σ is unknown (Central Limit Theorem)n < 30, σ is known
- So, that is all for our lesson today. Thank you for listening. And, see you all on our next meeting. Goodbye class!
- T-testn < 30, σ is not knownn ≥ 30, s is known
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