T-Tests

R.Venkatesakumar
Department of Management Studies
School of Management,
Pondicherry University
Puducherry, INDIA

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One Sample T-Test

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 Hypothesis Testing

A hypothesis is an assumption about a population parameter such as a

mean or a proportion
This is derived from the literature review / any other publications
Example: population mean
The mean data use for smartphone users is μ = 1.2 gigabytes [GB]
per month
Example: population proportion
The proportion of cell phone users with 4G contracts is π = 0.7 [70%]

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 Hypothesis Testing - Types

Hypothesis
Testing

Population Population
Mean Proportion

σ Known σ Unknown

1-Sample 2-Sample Many Samples 4

 Hypothesis Testing

• SPSS does not consider these options: Population SD Known /

Population SD Unknown

• It considers only ‘t’ tests; results will be closer to Z-test [through MS-
Excel], if sample size is greater than 30

• No separate choice to test proportions

• MS Excel Plugins have Z-Tests for Mean & Proportion separately

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 Hypothesis Testing-
One sample T-Test for Mean

• One-Sample ‘T’ Test procedure is useful to check whether the mean of a

single variable differs from a specified constant [considers as hypothesis]
– the constant taken from Review of Literature

• We may specify the ‘test’ value; default will be zero

• If the mobile company wants to test average monthly billing for
the customers of the competitor service [it may suggest a μ value]

• If the university administration wants to test number of

applications this year [it may suggest a μ value]

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 Hypothesis Testing

• State Null Hypothesis

• State Alternate hypothesis
• Specify the significance level X  
t 
• Compute the Standard Error SX
• ‘t’ / Z value will be computed
using the formula:
Specify the test value
[whether you want to test – the sample
mean is significantly different from zero
OR a specified value ]
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 What is the study…

Data collection is done to know the evaluation of previous &

current brand attributes and to test whether the evaluations
of each attribute is significantly different from zero

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What is your available literature collection
concluded?

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For the Product Category Testing, T-Test
is used a tool to consolidate the findings
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For the Brand Image testing, T-Test is used a
tool to consolidate the findings
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For the Product Attribute evaluations, T-Test is
used a tool to consolidate the findings
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What is your proposition / assumption /
hypothesis from the literature review?

Product Attributes evaluations are

significantly vary from ‘Zero’…

This is your Research Hypothesis / Research Proposition

This is different from your NULL / Alternative hypothesis
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Product Attribute Testing, to test various
Hypotheses, T-Test may be used

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What is your data suggested…?

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Try: Box Plot in SPSS

Current Brand Previous Brand 16

What's your gut feeling?

It appears:
Product attribute evaluations vary significantly from
zero [Current or Previous Brand]

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 Procedure

The null and alternative hypotheses are:

H0: μ1 = 0

H1:μ1 ≠ 0

By rejecting the null hypothesis, we conclude that

customer evaluation is significantly different from
zero

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The null and alternative hypotheses
(for the current data set)

Ho: Mean evaluation of product attribute is not

significantly different from zero.
H1: Mean evaluation of product attribute is
significantly different from zero.
.

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What SPSS will produce…

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What you are supposed to provide…!

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What you are supposed to provide…!

• Product attribute [Trust] evaluation is significantly

different from Zero for the Current Brand [μ=1.8786, σ
= 2.00553] [t=24.536, sig=0.000]
• Null hypothesis is not supported and alternate
hypothesis is accepted at 1% level of significance

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What is the argument expected…

• What you can suggest….

• Series hypothesis test conclude that the attribute
evaluation is significantly different from zero.
• Customers are not in neutral position on attribute
perception.
• or against … if so, reason

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Independent Sample T-Test

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 Independent Sample T-Test

The Independent-Samples ‘T’ Test is useful to compare

means for two groups of cases.

Ideally, for this test, the subjects should be randomly

assigned to two groups...

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 Independent Sample T-Test

Usually, the groups in a two-sample t test are fixed by design, and

the grouping variable has one value for each group.

However, there are times when assignment to one of two groups can
be made on the basis of an existing scale variable.

For example, consider Loyalty scores. You would like to perform a t

test on LOYALTY, using the Respondents above and below a given
cutoff score on LOYALTY as independent groups.

With the Independent-Samples T Test procedure, all you need to provide is

the cut point. 26
 Independent Sample T-Test

Goal: Test hypothesis or

Population means, form a confidence interval
independent samples
for the difference between
two population means,
μ1 – μ2
σ1 and σ2 unknown,
assumed equal
The point estimate for the difference is

X1 – X2
σ1 and σ2 unknown, not
assumed equal
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 Independent Sample T-Test

Different data sources

Unrelated
Population means,
independent samples
Independent
Sample selected from one
population has no effect on the
sample selected from the other
population
σ1 and σ2 unknown,
assumed equal Use Sp to estimate unknown σ. Use a
Pooled-Variance t test.

Use S1 and S2 to estimate unknown σ1

σ1 and σ2 unknown, not and σ2. Use a Separate-Variance t
assumed equal test.
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 Independent Sample T-Test

Two Population Means, Independent Samples

Lower-tail test: Upper-tail test: Two-tail test:

H0: μ1  μ2 H0: μ1 ≤ μ2 H0: μ1 = μ2

H 1: μ 1 < μ 2 H 1: μ 1 > μ 2 H1: μ1 ≠ μ2
i.e., i.e., i.e.,

H0: μ1 – μ2  0 H0: μ1 – μ2 ≤ 0 H0: μ1 – μ2 = 0

H1: μ1 – μ2 < 0 H1: μ1 – μ2 > 0 H1: μ1 – μ2 ≠ 0

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 Independent Sample T-Test
Hypothesis tests for µ1 - µ2
with σ1 and σ2 unknown and assumed equal
• The pooled variance is:
Population means,
independent samples n
S2  1
 1 S 1
2
 n 2  1 S 2
2

p
(n 1  1)  (n 2  1)

σ1 and σ2 unknown,
assumed equal
* • The test statistic is:
 X  X   μ
1 2  μ2 
t STAT  1

1 1 
S   
2
p

σ1 and σ2 unknown, not

 n1 n 2 
assumed equal
• Where tSTAT has d.f. = (n1 + n2 – 2)
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 Independent Sample T-Test
Hypothesis tests for µ1 - µ2
with σ1 and σ2 unknown and assumed not equal

Population means, The test statistic is:

independent samples
t STAT 
 X 1 
 X 2   μ1  μ 2 
S12 S 22

n1 n 2
σ1 and σ2 unknown,
assumed equal
tSTAT has d.f. ν =
2
 S1 2 S 2 2 
 
n  n 
  2
1 2 

*
2
 S1 2   S22 
σ1 and σ2 unknown, not    
assumed equal n  n 
 1   2 
n1  1 n2  1
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What is your available literature collection
concluded?

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For the group of consumers, Independent
Sample T-Test is used a tool to consolidate the
findings 33
For the product
attribute testing across
the Customer category,
Independent Sample T-
Test is used a tool to
consolidate the
findings

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For the product attribute
testing across the Country as
category, Independent
Sample T-Test is used a tool
to consolidate the findings

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For the product
attribute testing across
the Customer category,
Independent Sample T-
Test is used a tool to
consolidate the
findings

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For the Purchase
attribute testing across
the Gender of the
Customer as category,
Independent Sample T-
Test is used a tool to
consolidate the findings

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What is your proposition / assumption /
hypothesis from the literature review?

To test, whether the attribute evaluations

are varying between the consumer groups
[based on Loyalty]

This is your Research Hypothesis / Research Proposition

This is different from your NULL / Alternative hypothesis
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 Product Attribute Testing across the Loyalty
groups, Independent Sample T-Test may be used

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What is your data suggested…?

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 How SPSS will handle this situation?
The Independent-Samples T Test

 The t-test is only valid if we have approximately equal variances

within each of our two groups.

 When you have unequal group sizes- this may happen

 Otherwise - s12, s22
 One will be very high / another value will be very low; simple average
will be misleading – weighted average will be used

 The SPSS output will show another statistical calculation – viz.,

Levene’s Test for Equality of Variances

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 How SPSS will handle this situation?
What is Levene’s statistic tests?

First, the test assumes that the variances of the two groups are
equal.

If the sig. value is above 0.05-

-then null hypothesis – two groups have equal variance is true

If the sig. value is below 0.05- then null is rejected-

-two groups do not have equal variances

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Try: Descriptive Statistics with SPLIT File on SPSS

It appears…
Variances of the two groups, across the variable
– Trust …. is not equal

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What SPSS will produce…

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 What is the argument expected…

• From the Levene Test for equality of variance, it is

inferred that the hypothesis “two groups have equal
variance”, is rejected [F= 26.604, Sig.=0.000].
• So we take inferences from the unequal variance
assumption related finding;
• Mean of the low loyal consumer group [μ=1.5818, σ =
2.26448] is significantly different from high loyal
consumer group [μ=2.0406, σ = 1.83174] [t=-2.706, sig.=
0.007]
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What is the argument expected…

• What you can suggest….

• From the series of tests, you can argue …
• Whether the consumer groups are similar in
terms of their evaluations or not…
• reason for support
• or against … if so, reason
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Paired Sample T-Test

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 Paired Sample T-Test

Tests Means of 2 Related Populations

Paired or matched sample
Repeated measures (before/after
Use difference between paired values:

Di = X1i - X2i

Eliminates Variation Among Subjects

Assumptions:
• Both Populations Are Normally Distributed
• Or, if not Normal, use large samples
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 Paired Sample T-Test

The ith paired difference is Di , where

Di = X1i - X2i

D
The point estimate for the paired
difference population mean μD is D : i
D i 1
n
n
The sample standard deviation is
SD  i
(D  D ) 2

SD  i 1
n1
n is the number of pairs in the paired sample
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 Paired Sample T-Test

The test statistic for μD is:

D  μD
The Paired Difference Test: t STAT 
Finding tSTAT SD
n
 Where tSTAT has n - 1 d.f.

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 Paired Sample T-Test

The Paired Difference Test: Possible Hypotheses

Paired Samples

Lower-tail test: Upper-tail test: Two-tail test:

H0: μD  0 H0: μD ≤ 0 H0: μD = 0

H1: μD < 0 H1: μD > 0 H1: μD ≠ 0

a a a/2 a/2

-ta ta -ta/2 ta/2

Reject H0 if tSTAT < -ta Reject H0 if tSTAT > ta Reject H0 if tSTAT < -ta/2
or tSTAT > ta/2
Where tSTAT has n - 1 d.f. 51
What is your available literature collection
concluded?

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For the product category
comparison, Paired T-Test is
used a tool to consolidate the
findings

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For the Luxury / Counterfeit
product category comparison,
Paired T-Test is used a tool to
consolidate the findings

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What is your proposition / assumption /
hypothesis from the literature review?

To test, whether the attribute evaluations

are varying for the current versus previous
brands

This is your Research Hypothesis / Research Proposition

This is different from your NULL / Alternative hypothesis
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There is significant difference in Current Brand
Attribute evaluation from the previous brand used
by the consumers.

A Paired Sample T-Test may be used

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What is your data suggested…?

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 Paired Sample T-Test

Current Brand Previous Brand 58

What SPSS will produce…

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What you are supposed to provide…!

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What is the argument expected…

• There is a significant difference between the Current

Brand Attribute evaluation from the previous brand
used by the consumers
• Respondents gave higher evaluation [μ=1.8787, σ =
2.00553] for the current brand when compared with
their previous brand [μ=0.7483, σ = 2.3712]; the
difference is found to be significant [t=8.674, sig=0.000]
• Null hypothesis is not supported and alternate
hypothesis is accepted at 1% level of significance
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What is the argument expected…

• Null hypothesis is not supported and alternate hypothesis is

accepted at 1% level of significance

• So There is a support for your Research

Hypothesis / Research Proposition

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What is the argument expected…

• What you can suggest….

• Brand switching is not based on single attribute
evaluations
• Current Brand evaluations are significantly higher
• Whether the findings are in support of earlier
studies…
• or against … if so, reason
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Thank You

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