Chapter 9, Problem 1P

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8th Edition

Frederick J Gravetter + 1 other

ISBN: 9781133956570

Textbook Problem

Under what circumstances is a *t* statistic used instead of a ** z**-score for a hypothesis test?

To determine

**To find:** The circumstances where *t*-statistic is used instead of a z-score for a hypothesis test.

Answer

The *t*-statistic is used when the population variance (or standard deviation) is unknown and sample size is small (less than 30)

Explanation

The *t* statistic uses the sample variance or standard deviation in place of the unknown population values. Also, t-statistics is used when sample size is small

The *t*-statistic is used when the population variance or standard deviation is unknown.

If use a *z*-score, the information about population mean, sample mean, population standard deviation and sample size is required. Moreover, z-score works well when sample size is large whereas *t*-score are ideal for small sample size cases.

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