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​When to Use Z Test vs T Test

Statistical hypothesis testing is a powerful tool for drawing conclusions about populations based on sample data. Two of the most commonly used tests are the z-test and the t-test. While both tests are used to determine the probability of observing a certain result given a particular hypothesis, they are not interchangeable. In this blog post, we will discuss the difference between z-tests and t-tests, the formulas for each test, and when to use them.
z test vs t test

Z-Test and T-Test Difference

The primary difference between a z-test and a t-test is the sample size. A z-test is used when the sample size is large (typically 30 or more), whereas a t-test is used when the sample size is small (typically less than 30). The reason for this is that the distribution of sample means is more predictable with larger sample sizes, making the z-test more appropriate.
 
Another key difference is the assumptions that are made about the population. In a z-test, the population variance is known, while in a t-test, the population variance is unknown and must be estimated using the sample data. This is because when the sample size is small, it is more difficult to estimate the population variance accurately.

Z-Test vs T-Test Formula:

The following expression is the formula for the z-test:
z = (x - μ) / (σ / √n)
Where x represents the sample mean, μ is the population mean, σ is the population standard deviation, and n is the size of a sample. The z-value can then be compared to a standard normal distribution to determine the probability of observing a certain result given a particular hypothesis. If you need to run a quick z score calculation visit z score calculator.
 
The following expression is the formula for the t-test:
t = (x - μ) / (s / √n)
Where s is the sample standard deviation. Unlike the z-test, which compares the sample mean to the population mean, the t-test compares the sample mean to a hypothetical mean. This hypothetical mean is often zero, but can be any value depending on the specific hypothesis being tested. The t-value can then be compared to a t-distribution to determine the probability of observing a certain result given a particular hypothesis.

What is Z-Test and T-Test?

A z-test is a statistical test used to determine whether two population means are different when the population standard deviation is known. It is most commonly used when the sample size is large, as this makes the distribution of sample means more predictable. A z-test can be one-tailed or two-tailed, depending on the specific hypothesis being tested.
 
A t-test, on the other hand, is a statistical test used to determine whether two population means are different when the population standard deviation is unknown. It is most commonly used when the sample size is small, as this makes it more difficult to estimate the population variance accurately. Like the z-test, a t-test can be one-tailed or two-tailed, depending on the specific hypothesis being tested.

When to Use Z-Test vs T-Test

The decision to use a z-test or a t-test depends on several factors, including the sample size, the population variance, and the specific hypothesis being tested. If the sample size is large (typically 30 or more) and the population variance is known, a z-test is appropriate. If the sample size is small (typically less than 30) and the population variance is unknown, a t-test is appropriate.
 
Z-tests and t-tests are both useful statistical tests for drawing conclusions about populations based on sample data. While they are similar, they are not interchangeable. Understanding the differences between these tests and knowing when to use each one is essential for drawing accurate conclusions from statistical analyses.
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