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Two Means - Sigma Known Hypothesis Test - Excel definitions

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  • Population Standard Deviation
    A fixed measure of variability for an entire group, used when calculating test statistics for hypothesis tests.
  • Normal Distribution
    A symmetric, bell-shaped curve used for statistical inference when population variability is known.
  • Z-Test
    A statistical method for comparing two means when population variability is known, relying on the normal curve.
  • Null Hypothesis
    A statement asserting no difference between two group averages, serving as the default assumption in testing.
  • Alternative Hypothesis
    A claim suggesting a difference or direction between two group averages, tested against the default assumption.
  • Sample Mean
    An average calculated from collected data, representing the central value for a group in hypothesis testing.
  • Sample Size
    The number of observations in a group, influencing the precision of statistical calculations.
  • Z-Score
    A value quantifying how far apart two sample averages are, standardized by known variability and sample sizes.
  • P-Value
    A probability indicating how likely observed results are under the default assumption, guiding decision-making.
  • Alpha
    A threshold probability for deciding whether to reject the default assumption, commonly set at 0.05.
  • Cumulative Probability
    A measure from the normal curve representing the likelihood of observing a value as extreme or more.
  • Left Tail
    The portion of the normal curve representing values less than a specified point, used for one-sided tests.
  • Excel Function
    A built-in tool in spreadsheet software for automating calculations such as averages or probabilities.
  • NORM.S.DIST
    A spreadsheet command for finding cumulative probabilities from the standard normal curve.
  • Hypothesis Test
    A structured process for evaluating claims about group averages using statistical evidence.