Determine your test statistic: either use a z-test or t-test• There are three key questions to ask:ƒ Is the variance of the population known?ƒ Is the distribution of the population normal (or approx. normal)?ƒ Is the sample size large?1. When the variance is known and either the distribution is normal or sample size is large,use a z-test statistic2. When the variance is unknown and a sample size less than 30, use a t-test statistic aslong as the population is normal (or approx. normal)?

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Determine your test statistic: either use a z-test or t-test
• There are three key questions to ask:
ƒ Is the variance of the population known?
ƒ Is the distribution of the population normal (or approx. normal)?
ƒ Is the sample size large?
1. When the variance is known and either the distribution is normal or sample size is large,
use a z-test statistic
2. When the variance is unknown and a sample size less than 30, use a t-test statistic as
long as the population is normal (or approx. normal)?

Expert Solution
Step 1

z-test:

when the population variance is known and if the distribution is normal or sample size is large then we have to use z-test to test the mean of the given sample.

 

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