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Z and T Test

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A parametric test is a statistical test which makes certain assumptions about

the distribution of the unknown parameter of interest and thus the test statistic is


valid under these assumptions. A significance test under a Simple Normal Model for
example has the assumption that the parameter has a normal distribution, behaves
like an independent variable (is the result of an independent process) is identically
distributed and has a constant mean and variance. Therefore, an integral part of
applying such a test is making sure it is adequate vis-a-vis the observed data. This
process is called mis-specification testing.
The parametric test make certain assumptions about a data set; namely – that the
data are drawn from a population with a specific or normal distribution. It is further
assumed in parametric test that the variables in the population are measured based
on an interval scale.
When parametric tests are used

 When the data has a normal distribution


 When the measurement scale is interval or ratio

Types of Parametric test–

 Two-sample t-test
 Paired t-test
 Analysis of variance (ANOVA)
 Pearson coefficient of correlation

Parametric tests assume a normal distribution of values, or a “bell-shaped curve.”


For example, height is roughly a normal distribution in that if you were to graph
height from a group of people, one would see a typical bell-shaped curve. This
distribution is also called a Gaussian distribution. Parametric tests are in general
more powerful (require a smaller sample size) than nonparametric tests.
Nonparametric tests are used in cases where parametric tests are not appropriate.
Most nonparametric tests use some way of ranking the measurements and testing
for weirdness of the distribution. Typically, a parametric test is preferred because it
has better ability to distinguish between the two arms. In other words, it is better at
highlighting the weirdness of the distribution. Nonparametric tests are about 95% as
powerful as parametric tests.
T-Test
The t score is a ratio between the difference between two groups and the difference within the groups. The
larger the t score, the more difference there is between groups. The smaller the t score, the more similarity there
is between groups. A t score of 3 means that the groups are three times as different from each other as they are
within each other. When you run a t test, the bigger the t-value, the more likely it is that the results are
repeatable.
 A large t-score tells you that the groups are different.
 A small t-score tells you that the groups are similar.
There are three main types of t-test:
 An Independent Samples t-test compares the means for two groups.
 A Paired sample t-test compares means from the same group at different times (say, one year
apart).
 A One sample t-test tests the mean of a single group against a known mean.
The t-test is a test in statistics that is used for testing hypotheses regarding the
mean of a small sample taken population when the standard deviation of the
population is not known.
 The t-test is used to determine if there is a significant difference
between the means of two groups.
 The t-test is used for hypothesis testing to determine whether a
process has an effect on both samples or if the groups are different
from each other.
 Basically, the t-test allows the comparison of the mean of two sets of
data and the determination if the two sets are derived from the
same population.
 After the null and alternative hypotheses are established, t-test
formulas are used to calculate values that are then compared with
standard values.
 Based on the comparison, the null hypothesis is either rejected or
accepted.
 The T-test is similar to other tests like the z-test and f-test except
that t-test is usually performed in cases where the sample size is
small (n≤30).

1. It is a parametric test of hypothesis testing based on Student’s T


distribution.

2. It is essentially, testing the significance of the difference of the mean


values when the sample size is small (i.e, less than 30) and when the
population standard deviation is not available.
3. Assumptions of this test:

 Population distribution is normal, and


 Samples are random and independent
 The sample size is small.
 Population standard deviation is not known.

4. Mann-Whitney ‘U’ test is a non-parametric counterpart of the T-test.

A T-test can be a:

One Sample T-test: To compare a sample mean with that of the population
mean.

where,

x̄ is the sample mean

s is the sample standard deviation

n is the sample size

μ is the population mean

Two-Sample T-test: To compare the means of two different samples.


where,

x̄1 is the sample mean of the first group

x̄2 is the sample mean of the second group

S1 is the sample-1 standard deviation

S2 is the sample-2 standard deviation

n is the sample size

T-test applications
 The T-test is used to compare the mean of two samples, dependent
or independent.
 It can also be used to determine if the sample mean is different from
the assumed mean.
 T-test has an application in determining the confidence interval for a
sample mean.

Conclusion:

 If the value of the test statistic is greater than the table value -
> Rejects the null hypothesis.
 If the value of the test statistic is less than the table value -> Do not
reject the null hypothesis

Z-Test
A z-test is a statistical test used to determine whether two population
means are different when the variances are known and the sample size is
large.
-test is a statistical tool used for the comparison or determination of the
significance of several statistical measures, particularly the mean in a sample
from a normally distributed population or between two independent samples.
 Like t-tests, z tests are also based on normal probability distribution.
 Z-test is the most commonly used statistical tool in research
methodology, with it being used for studies where the sample size is
large (n>30).
 In the case of the z-test, the variance is usually known.
 Z-test is more convenient than t-test as the critical value at each
significance level in the confidence interval is the sample for all
sample sizes.
 A z-score is a number indicating how many standard deviations
above or below the mean of the population is.

1. It is a parametric test of hypothesis testing.

2. It is used to determine whether the means are different when the
population variance is known and the sample size is large (i.e, greater than
30).

3. Assumptions of this test:

 Population distribution is normal


 Samples are random and independent.
 The sample size is large.
 Population standard deviation is known.

A Z-test can be:

One Sample Z-test: To compare a sample mean with that of the population
mean.
                                                 Image Source: Google Images

Two Sample Z-test: To compare the means of two different samples.

where,

x̄1 is the sample mean of 1st group

x̄2 is the sample mean of 2nd group

σ1 is the population-1 standard deviation

σ2 is the population-2 standard deviation


n is the sample size

z-test applications
 Z-test is performed in studies where the sample size is larger, and
the variance is known.
 It is also used to determine if there is a significant difference
between the mean of two independent samples.
 The z-test can also be used to compare the population proportion
to an assumed proportion or to determine the difference between
the population proportion of two samples.

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