Statistical Tests

What is a Statistical Test?

A statistical test provides a mechanism for making quantitative decisions about a process or processes. Generally, the purpose is to determine whether enough evidence exists to reject a null hypothesis (\(H_0\)) in favor of an alternative hypothesis (\(H_1\)).

Types of Statistical Tests

There are numerous statistical tests, each suited for different types of data and hypotheses. Some common tests include:

  • Z-test: Used for comparing the mean of a sample to a known value, usually in large samples.
  • T-test: Used to compare the means of two groups, especially useful when the sample sizes are small.
  • Chi-squared test: Used to determine whether there is a significant association between categorical variables.
  • ANOVA: Used to compare the means among three or more groups.

Hypothesis Testing Framework

The general steps in hypothesis testing are:

  1. State the Hypotheses:

    • Null hypothesis (\(H_0\));
    • Alternative hypothesis (\(H_1\));
  2. Choose the Appropriate Test: Select the statistical test that fits the data and the research question;

  3. Set the Significance Level \(\alpha\): Commonly set at \(\alpha=5\%\);

  4. Calculate the Test Statistic: Based on the sample data, compute a statistic according to the test type;

  5. Decision: Reject or do not reject the null hypothesis based on the p-value or critical value.