Log-in | Contact Jeff | Email Updates

Question 89:



No answer provided yet.Like many things, it depends. Two of the most common applications of using the t-statistic are when comparing two sample means (the t-test) and creating a confidence interval around the sample mean. Usually, the t-statistic is used when computing a statistic on a sample rather than the entire population of whatever is being studied. Itís rarely the case that people have all the data from a population, so the t-statistic is used a lot. Another nice property of the t-statistic is that as your sample size gets larger and larger, the t-statistic and the z-statistic become increasingly the same.

For example, if you were computing a confidence interval around a mean and your sample size was 10, the t-statistic is 2.26 and the z-statistic is 1.96 for a two-sided 95% confidence interval. At a sample size of 100 the t-statistic is 1.98 and at 500 is 1.96. The difference between the two becomes infinitesimally small and they theoretically equal each other when the sample size is infinity.

Not what you were looking for or need help?

Ask a new Question

Browse All 869 Questions

Search All Questions: