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- HOW TO DETERMINE THE APPROPRIATE TOOL WHEN:VARIANCE IS UNKNOWN
- When the population variance is unknown, however, the t-test is the proper test statistic to apply.
- HOW TO DETERMINE THE APPROPRIATE TOOL WHEN:VARIANCE IS UNKNOWN
- A t-test is an inferential statistic that is used to see if there is a significant difference between the means of two groups that are similar in some ways.
- 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 unknownThe sample dstandard deviation (s) is knownThe population is normal or nearly normally distributedThe sample size is less than 30 (n30)
- Finally, when the Central Limit Theorem is used, the appropriate test statistic is z-test, with population standard deviation (σ) replaced 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 population is normally distributed or the sample size is large and the true population means μ=μ0,the z has a standard normal distributionThe sample size is extremely large and the variance (σ2) is known or unknownThe sample standard deviation (σ) when the value of σ is unknown
- HOW TO DETERMINE THE APPROPRIATE TOOL WHEN:CENTRAL LIMIT THEOREM
- Z-test T-test n30,σ is known n30,σ is not knownn30,σ is unknown n30,s is known(Central Limit Theorem) n30,σ is known
- That is all for our lesson. Thank you for listening and see you next time!
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