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Differences Between Z and T Test

The document compares the z-test and t-test. The z-test is used when the standard deviation is known and the sample size is large (n > 30). The t-test is used when the standard deviation is unknown or the sample size is small (n < 30). Key differences are that the z-test assumes a normal distribution while the t-test uses the Student's t-distribution, and the z-test requires a known population variance while the t-test does not. The document provides examples of when each test would be used and a table comparing their basic definitions and assumptions.

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priya sundaram
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269 views

Differences Between Z and T Test

The document compares the z-test and t-test. The z-test is used when the standard deviation is known and the sample size is large (n > 30). The t-test is used when the standard deviation is unknown or the sample size is small (n < 30). Key differences are that the z-test assumes a normal distribution while the t-test uses the Student's t-distribution, and the z-test requires a known population variance while the t-test does not. The document provides examples of when each test would be used and a table comparing their basic definitions and assumptions.

Uploaded by

priya sundaram
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Differences Between Z-Test and T-Test

Introduction
Z Test is the statistical hypothesis which is used in order to determine that whether the
two samples means calculated are different in case the standard deviation is available
and sample is large whereas the T test is used in order to determine a how averages of
different data sets differs from each other in case standard deviation or the variance is
not known.
Z-tests and t-tests are the two statistical methods that involve data analysis which has
applications in science, business, and many other disciplines. The t-test can be
referred to a univariate hypothesis test that is based on t-statistic, wherein the mean
i.e. the average is known, and population variance i.e. standard deviation is
approximated from the sample. On the other hand, Z-test, also a univariate test which
is based on a standard normal distribution.

Uses
#1 – Z-Test
Z-tests, as mentioned earlier, are the statistical calculations that can be used to
compare population averages to a sample’s. The z-test will tell you how far,
in standard deviations terms, a data point is from the average of a data set. A z-test
will do a comparison of a sample to a defined population that is typically used for
dealing with problems relating to large samples (i.e. n > 30). Mostly, they are very
useful when the standard deviation is known.

#2 – T-Test
T-tests are also calculations that can be used to test a hypothesis, but they are very
useful when we need to determine if there is a statistically significant comparison
between the 2 independent sample groups. In other words, a t-test asks whether the
comparison between the averages of 2 groups is unlikely to have occurred due to
random chance. Usually, t-tests are more appropriate when you are dealing with
problems with a limited sample size (i.e. n < 30).

 Z-Test vs T-Test Infographics


Here we provide you with the top 5 differences between z-test vs t-test you must
know.
Key Differences
 One of the most important conditions for conducting a t-test is that population

standard deviation or the variance is unknown. Conversely, population

variance as stated above should be assumed to be known or be known in case

of a z-test.

 The t-test as mentioned earlier is based on Student’s t-distribution. On the

contrary, the z-test depends upon the assumption, that the distribution of

sample means will be normal. Both the normal distribution and student’s t-

distribution appears the same, as both are bell-shaped and symmetrical.

However, they differ in one of the cases that in at-distribution, there is lesser

space in the center and more in their tails.

 Z-test is used as given in the above table when the sample size is large, which

is n > 30, and the t-test is appropriate when the size of the sample is not big

which is small, i.e. that n < 30.

 
Z-Test vs T-Test Comparative Table
Basis Z Test T-Test
Basic Definition Z-test is kind of hypothesis test which The t-test can be referre
ascertains if the averages of the 2 datasets parametric test that is appl
are different from each other when standard how the averages of 2 sets
deviation or variance is given. each other when the stan
variance is not given.
Population The Population variance or standard The Population variance or
Variance deviation is known here. is unknown here.
Sample Size The Sample size is large Here the Sample Size is sma
 All data points are independent.  All data points are no

Key Assumptions  Normal Distribution for Z, with an  Sample values are to

average zero and variance = 1. taken accurately

Based upon (a type


Z test is based on Normal distribution. A t-test is based on Student-
of Distribution)

 
Conclusion
By and to the larger extent, both these tests are almost similar, but the comparison
comes only to their conditions for their application, meaning that the t-test is more
appropriate and applicable when the size of the sample is not more than thirty units.
However, if it is greater than thirty units, one should use a z-test. Similarly, there are
also other conditions, which will make it clear that which test is to be performed in a
situation.

Well, there are also different tests like f test, two-tailed vs single-tailed, etc.,
statisticians must be careful while applying them after analyzing the situation and then
deciding which one to use. Below is a sample chart for what we discussed above.

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