2. Z-test is a statistical technique used to test
the significance of a sample mean. It is
widely used in hypothesis testing, confidence
intervals, and sample size determination.
Understanding this method is essential for
data analysts and researchers.
Introductio
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3. Z-test is a statistical procedure used to test an
alternative hypothesis against a null hypothesis.
Z-test is any statistical hypothesis used to
determine whether two samples’ means are
different when variance are known and is large (n >
30)
It is comparison of the means of two independent
groups of samples, taken from one population with
known variance
What is Z-test ?
4. When do we use Z-Test ?
When samples are drawn at random.
When the samples are taken from population
are independent.
When standard deviation is known.
When number of observation is large (n > 30)
5. Procedure for testing the Hypothesis
Step-1: Formulation of hypothesis
Hypothesis testing is a fundamental
concept in Z-test. It involves setting up a
null hypothesis and an alternative
hypothesis,
6. 1. Null Hypothesis (H0):
A null hypothesis is a hypothesis which the researcher
tries to disprove, reject or nullify. The ‘null’ often refers
to the common vies of something.
2. Alternative Hypothesis (H1):
The alternative hypothesis is what the researcher really
thinks is the cause of a phenomenon.
Example: In case of determining the effectiveness of a
drug in curing asthma.
H0: The drug is not efficient to cure asthma.
Ha: The drug is efficient to cure asthma.
7. Step-2: Selecting the suitable level of significance
Level of significance indicates that the chance of rejecting the null hypothesis
by considering it as false, when it is true.
Generally 5% or 1% level of significance is used in hypothesis testing.
Accept the H0 if the sample
Statistic value lies in this area
95% of the area
5% 5%
Reject H0 if the sample statistic
value lies in these areas
8. Step-3: Selecting a suitable sample distribution:
The most commonly used probability distributions are
Normal
T and F
Step-4: Calculating Test Statistic:
9. Step-5: Draw conclusions:
If the calculated test statistic is greater than the table value at given level
of significance, reject null hypothesis.
If the calculated test statistic is less than or equal to table then accept the
null hypothesis