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Sample z test and Sample t test

A random sample X1, X2, …, Xn is from a normal population with mean µ and variance σ2. If σ is unknown, give a 95% confidence interval of the population mean, and interpret it. Discuss the major difference between one sample z test and one sample t test.

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Suppose X1, X2, …, Xn be a random sample from a normal population with mean µ and variance σ2.

Assume that σ is unknown.

Define:

X‾: Sample mean
S: sample standard deviation
n: Sample Size

In this case the population variance is unknown, consequently we use t test for estimation of confidence interval.

A 95 % confidence interval for the population mean is given by:

461_stats1.jpg

here α = 0.05.

Note that if there population variance is known, we have to use normal distribution i.e. Z test instead of t distribution.

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