BUSINESS STATISTICS

T-TEST

The t-test is one type of inferential statistics. It is used to determine whether there is a significant
difference between the means of two groups.
With all inferential statistics, we assume the dependent variable fits a normal distribution.

 The t-test is described as the statistical test that examines whether the population means of two
samples greatly differ from one another, using t-distribution which is used when the standard
deviation is not known, and the sample size is small.
 It is a tool to analyze whether the two samples are drawn from the same population.
 The test is based on t-statistic, which assumes that variable is normally distributed (symmetric bell-
shaped distribution) and mean is known and population variance is calculated from the sample.
 In t-test null hypothesis takes the form of H0: µ(x) = µ(y) against alternative hypothesis H1: µ(x) ≠
µ(y), wherein µ(x) and µ(y) represents the population means.
 The degree of freedom of t-test is n1 + n2 – 2
 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.
 The t-test is one of many tests used for the purpose of hypothesis testing in statistics.
 Calculating a t-test requires three key data values. They include the difference between the mean
values from each data set (called the mean difference), the standard deviation of each group, and
the number of data values of each group.
 There are several different types of t-test that can be performed depending on the data and type of
analysis required.

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