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  • WELCOME TO STATISTICS AND PROBABILITY CLASS
  • Hello there!I am Mrs. Stats and I will be your math teacher in the Statistics and Probability.
  • WELCOME TO STATISTICS AND PROBABILITY CLASS
  • Today, I will discuss how to determine the appropriate test statistic when VARIANCE IS KNOWN, VARIANCE IS UNKNOWN, and CENTRAL LIMIT THEOREM IS USED.
  • A test statistic is a random variable that is calculated from sample data and used in a hypothesis test. You can use test statistics to determine whether to reject or accept the null hypothesis. The test statistic compares your data with what is expected under the null hypothesis.
  • WHAT IS ATEST STATISTIC?
  • HOW TO DETERMINE THE APPROPRIATE TOOL WHEN:VARIANCE IS KNOWN
  • When the Population Variance  is Known, the appropriate test statistic to used is z-test.
  • What is a z-test?Z-test is a statistical test to determine whether two population means are different when the variances are known and the sample size is large.
  • HOW TO DETERMINE THE APPROPRIATE TOOL WHEN:VARIANCE IS KNOWN
  • REMEMBER:Z-test is the appropriate tool to used when:The population standard deviation (σ) is known.The population is normally distributed.A z-score is calculated with population parameters.It is used to validate a hypothesis that the sample drawn belongs to the same population.The sample is large (n ≥ 30).
  • HOW TO DETERMINE THE APPROPRIATE TOOL WHEN:VARIANCE IS KNOWN
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