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T Statistic and Z Statics Difference

The document defines key terms used in hypothesis testing including: the null hypothesis, alternative hypothesis, Type I and Type II errors, test statistic, critical region, critical value, significance level, decision, and conclusion. It provides examples of when to use a z-score or t-score for hypothesis testing. It also gives examples of how to calculate a standardized test statistic and find the probability of a sample mean being above a given value.

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Madison Hartfield
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55 views

T Statistic and Z Statics Difference

The document defines key terms used in hypothesis testing including: the null hypothesis, alternative hypothesis, Type I and Type II errors, test statistic, critical region, critical value, significance level, decision, and conclusion. It provides examples of when to use a z-score or t-score for hypothesis testing. It also gives examples of how to calculate a standardized test statistic and find the probability of a sample mean being above a given value.

Uploaded by

Madison Hartfield
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Definitions

Null Hypothesis ( H0 )


Statement of zero or no change. If the original claim includes equality (<=, =, or >=), it is the
null hypothesis. If the original claim does not include equality (<, not equal, >) then the null
hypothesis is the complement of the original claim. The null hypothesis always includes the
equal sign. The decision is based on the null hypothesis.

Alternative Hypothesis ( H1 or Ha )


Statement which is true if the null hypothesis is false. The type of test (left, right, or two-tail)
is based on the alternative hypothesis.

Type I error
Rejecting the null hypothesis when it is true (saying false when true). Usually the more
serious error.

Type II error
Failing to reject the null hypothesis when it is false (saying true when false).

Test statistic
Sample statistic used to decide whether to reject or fail to reject the null hypothesis.

Critical region
Set of all values which would cause us to reject H 0

Critical value(s)
The value(s) which separate the critical region from the non-critical region. The critical
values are determined independently of the sample statistics.

Significance level ( alpha )


The probability of rejecting the null hypothesis when it is true. alpha = 0.05 and alpha = 0.01
are common. If no level of significance is given, use alpha = 0.05. The level of significance
is the complement of the level of confidence in estimation.

Decision
A statement based upon the null hypothesis. It is either "reject the null hypothesis" or "fail to
reject the null hypothesis". We will never accept the null hypothesis.

Conclusion
A statement which indicates the level of evidence (sufficient or insufficient), at what level of
significance, and whether the original claim is rejected (null) or supported (alternative).
The Z-score:  allows you to decide if your sample is different from the population mean. In order to use z, you
must know four things:

1. The population mean.
2. The population standard deviation.
3. The sample mean.
4. The sample size. (above 30)

T- Score: The general rule of thumb for when to use a t score is when your sample:

1. Has a sample size below 30,


2. Has an unknown population standard deviation.
The mean life of a particular battery is 75 hours. A sample of 9 light bulbs is chosen and found to have a
standard deviation of 10 hours and a mean of 80 hours. Find the standardized test statistic.

Plug the information into the formula and solve:


x̄ = sample mean = 80
μ0 = population mean = 75
s = sample standard deviation = 10
n = sample size = 9
t = 80-75 / (10/√9) = 1.5.

This means that the standardized test statistic (in this case, the t-score) is 1.5.

The average test score for an entire school is 75 with a standard deviation of 10. What is the probability that a
random sample of 5 students scored above 80?

Mean:= 75

Stand deviation=10

Number=5

Sample mean=80
This z-score will tell you how many standard errors there are between the sample mean and the population
mean.

The average test score for an entire school is 75. The standard deviation of a random sample of 40 students is
10. What is the probability that average test score for the sample is above 80?

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