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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 ist-test.
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- HOW TO DETERMINE THE APPROPRIATE TOOL WHEN:VARIANCE IS UNKNOWN
- 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.
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- 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 ornearly normallydistributed.The sample size is less than 30 (n30).
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- HOW TO DETERMINE THE APPROPRIATE TOOL WHEN:CENTRAL LIMIT THEOREM
- Lastly,when the Central Limit Theorem (CLT) is used, the appropriate test statistic isusing z-test by replacingpopulation standarddeviation (σ) by samplestandard deviation (s) inthe formula.
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- HOW TO DETERMINE THE APPROPRIATE TOOL WHEN:CENTRAL LIMIT THEOREM
- REMEMBER:Z-test is the appropriate tool to used in central limit theorem when:If the population is normally distributed or the sample size is large and the true population means μ =μo, the z has a standard normal distribution.The sample size is extremely large and the variance (σ2)is known or unknown.The sample standard deviation (s) may be used as an estimate of the population standard deviation(σ)when the value ofσis unknown.
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- T-testn 30,σ is not knownn ≥ 30,s is known
- 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!
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