In: Statistics and Probability
Please, explain to me how can I know when I need to use z- table and when to use t-table distribution. Please, be as detailed as you can. I want to look a problems and know which one I need.
solution:
when sample size is less than 30
and sample standard deviation is given (population standard deviation unknown)
that why we should use t table
example
n = Degrees of freedom = df = n - 1 =15 - 1 = 14
At 95% confidence level the t is ,
= 1 - 95% = 1 - 0.95 = 0.05
/ 2= 0.05 / 2 = 0.025
t /2,df = t0.025,14 =: 2.145 ( using student t table)
2.
when sample size greater than 30
amd population standard deviation known
thats why we should use here z table
Population standard deviation =
= 2
Sample size n =65
At 95% confidence level the z is ,
= 1 - 95% = 1 - 0.95 = 0.05
/ 2 = 0.05 / 2 = 0.025
Z/2 = Z0.025 = 1.96 ( Using z table )