Z-test

• Use z test to test the null hypothesis

• A two sample z test compares the means of two sets of data to see if
there’s a difference.
• Use the p value from the test to decide whether to support or reject
the null hypothesis.
• For example,
• A manufacturer test some new product to see whether it is superior
to a previous product.
• start by stating the null hypothesis (there’s no difference) and then
state the alternate hypothesis: there is a difference in means.
• Then use z test.
• Use two sample z test if sample size is greater than 30.
• Below 30, use a t-test.
• We will compare the z-Statistic value to the z-Critical two-tail
statistic.
• Use a one-tail test if testing that a value is above or below some level.
• If the p-value is larger than Alpha (0.05), we cannot reject the null
hypothesis that there is no significant difference in the means of each
sample.
• In this example P(Z <= z) two tail (1) gives us the probability that a
value of the z-Statistic (0) would be observed that is larger in absolute
value than z Critical two-tail (1.96).
• Since the p-value is larger than our Alpha (0.05), we cannot reject the
null hypothesis that there is no significant difference in the means of
each sample.