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z-test vs t-test — when to pick each?

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Answer

  • z-test: known population variance (rare in practice), or very large n (>~100) where t-distribution ≈ normal. t-test: unknown population variance (usual case).
  • For proportions with large n: z-test for a proportion or two-proportion z-test.
  • The 'z-test for a proportion' is common in A/B testing.
  • Modern practice: default to t-test unless you specifically know σ.
Check yourself — multiple choice
  • Same test
  • z: known σ or very large n / proportion tests; t: unknown σ — default to t in practice
  • Only z is used
  • Only for classification

z: known σ or proportions; t: unknown σ — default to t.

#hypothesis-testing#parametric-tests

Practise Statistics Fundamentals

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